Italy is relaxing its Ban and Coming down Easy on CryptocurrenciesMay 30, 2019
Egypt banned all cryptocurrencies per Islamic Law. There is a proposed bill focused on banning the creation, trading, and promotion of cryptocurrencies without any license.
Shawki Allam, the current Grand Mufti of Egypt, stated early in 2018 that technology might probably undermine the tax system through money laundering and several other fraudulent activities. The Grand Mufti previously expressed concerns regarding volatility and scams.
Now, since the cryptocurrency is expanding in the neighboring states, Egypt is considering to explore the opportunities by softening the stance.
The bill proposes that the board of directors of the Central Bank of Egypt (CBE) will be given the exclusive right to regulate the cryptocurrencies and requiring them to increase the numbers of expensive licenses to do business potentially.
The new law provides the powers to The Board of Directors to frame rules and procedures to regulate all transactions related to cryptocurrencies, ranging from electronic payment orders, transfer orders, settlement of electronic checks, electronic discount orders, and issuance of electronic checks, etc. The draft bill is not yet made available for public reading.
A recent research paper from the University of Vaasa in Finland has researched the chances of a cryptocurrency default. This study is important at this point because at present there are more than 2000 cryptocurrencies. The research reports that about 743 coins have defaulted. The default levels are not encouraging. Understanding the indicators for default is important to understand, which cryptocurrency will ultimately bust.
The performance of a coin on the first day of its launch has a lot to reveal about how the crypto will perform down the lane. A coin with a great day one and stability for the first month is less likely to bust. While the current indicators are early models, the researchers are confident that these results are good at predicting results.
Those companies who are into a lot of pre-mining are very likely to fail. The research indicates that pre-mining by itself is not harmful, a lot of it is, however, an indicator of a company which might bust.
Those companies that have anonymous founders are an indicator of bankruptcy. It has been seen that nearly 79% of the defaulting cryptocurrency companies have had unknown founders. Companies which have lower minimal rewards per block are likely to bust. Most cryptocurrencies are likely to bust in 4 years if they prove decisive on the negative indicators.