Partnership Will Bring First Licensed Crypcurrency Exchange to Vietnam
“Legalities of the exchange are unclear after Vietnam has previously restricted digital asset investments”
By Block Society
Kronn Ventures AG and Linh Thanh Group have signed an agreement to enter a partnership to launch the first licensed cryptocurrency exchange in Vietnam. Kronn Ventures AG is a blockchain technology firm headquartered in Switzerland that began working with five countries, including Vietnam, Bangladesh, Sri Lanka, the Philippines and Cambodia, in October 2018 to develop a blockchain powered international wire transfer system.
Linh Thanh Group possesses the largest distribution network in Vietnam, providing networking and access to consumers for the exchange. The companies successfully obtained licensing for the exchange despite the uncertainty of cryptocurrency’s place and legality in Vietnam. However, Vietnam’s State Securities Commission announced in July 2018 that industry firms were prohibited from trading and investing cryptocurrency. Vietnam banned vendors from accepting cryptocurrency payments in February 2018.
Stellar Burned 2.25 Billion XLM in Response to Illicit Creation of Coins
Messari, a cryptocurrency security and intelligence company, recently released a report stating that Stellar experienced a bug in 2017 that resulted in the unauthorized creation of 2.25 billion XLM. Although the bug was not widely reported, Stellar became aware of the issue and responded by burning 2.25 XLM to prevent price inflation.
In 2017, an unknown hacker exploited a conconcurrency bug in the Stellar protocol, resulting in the illicit creation of 2.25 XLM. At the time, the XLM had a market value in excess of $10 million and equated to 25% of the total XLM supply. It is believed that the vast majority of the coins were sold on various exchanges.
While the bug was not widely discussed in 2017, Stellar did mention the bug to community members and assured that the bug would be addressed, and the excess supply burned.
“Peter Van Valkenburgh, the Director of Research at Coin Center, made a presentation to the CFTC that covered DLT, specifically information about Proof of Stake concepts and how it impacts the ability of bad actors to manipulate markets.“
CFTC Discusses Proof of Stake Protocol’s and Distributed Ledger Technology
The CFTC’s Technology Advisory Subcommittee discussed cryptocurrency, Distributed Ledger Technology (DLT) and Proof of Stake concepts during a meeting held on March 27, 2019. Peter Van Valkenburgh, the Director of Research at Coin Center, made a presentation to the CFTC that covered DLT, specifically information about Proof of Stake concepts and how it impacts the ability of bad actors to manipulate markets.
With Ethereum announcing that it will adopt a Proof of Stake concept, the CFTC sought additional insight about how transitioning from a Proof of Work protocol to a Proof of Stake protocol can affect investors and regulators. The CFTC was particularly interested in DLT’s and how ledger manipulation and fraud is influenced by the type of mining concept used by a platform.
Kronn Ventures AG. 22 March 2019. Kronn Ventures AG to Establish Vietnam’s First Authorized Cryptocurrency Exchange and Lead Cryptocurrency Production. https://www.prnewswire.com/news-releases/kronn-ventures-ag-to-establish-vietnams-first-authorized-cryptocurrency-exchange-and-lead-cryptocurrency-production-300816680.html
Messari. 27 March 2019. Messari Research: Stellar Suffered and Quietly Patched a 2.2 Billion XLM Inflation Bug in 2017. https://messari.io/article/messari-research-stellar-suffered-and-quietly-patched-a-2-2-billion-xlm-inflation-bug-in-2017
CFTC. 27 March 2019. Opening Statement of Commissioner Brian Quintenz Before the CFTC Technology Advisory Committee. https://www.cftc.gov/PressRoom/SpeechesTestimony/quintenz032719#_ftn3