Today on Altcoins This Week we discuss the class action lawsuit against Ripple, we review recent blockchain related patents filed by JPMorgan and IBM, Altcoin Prices and more.
Ripple Faces Class Action Lawsuit
The Taylor-Copeland law firm has filed a class action suit against Ripple Labs for the alleged sale of unregistered securities. The official complaint targets Ripple, XRP II and Ripple’s CEO, Brad Garlinghouse, claiming that the sale of XRP tokens was made in violation of US Securities Law. The plaintiff states that they lost about 32% of their investment (roughly $550). This was contrary to his expectation, due he claims, to the promotional practices of Ripple Labs and favourable comments made regarding the cryptocurrency.
Furthermore, the plaintiff claims that Ripple Labs violated the Securities Act and the California Corporations Code. They are seeking payment of attorney’s fees, costs of the suit and punitive damages. Additionally, they want the court to declare XRP an unregistered security sale and to prevent defendants from further violations of the law. Although the amount itself is relatively insignificant, the precedent that such a ruling could have for Ripple is massive.
South Korea to Ease Cryptocurrency Regulations
According to The Korea Times, the newly appointed Financial Supervisory Service (FSS) Governor, Toon Suk-heun, has commented on speculation regarding the relaxing of cryptocurrency regulations. Suk-heun stated that the FSS plans to collaborate with the FSC on an inspection of policies and financial institutions to further develop legislation for the cryptocurrency market. Suk-heun noted that better regulations were needed in order to produce a more stable financial system.
South Korea has had a difficult journey with legislation for cryptocurrencies, given that various exchanges in the region have experienced major hackings. Just recently, the FSC ordered all crypto traders to pass a real-name identification process, meaning that they would no longer be able to use anonymous accounts. BitHum, the second largest cryptocurrency exchange in the area, condemned the move, stating that the regulations were responsible for the plummet in the market from 4 trillion to around 400 billion, and that furthermore, the regulations were aiming to kill the market, instead of providing solutions to help the crypto trading industry. A group of lawmakers are currently working to promote a new bill which would rescind the existing ban on initial coin offerings, permitting those that meet certain criteria and conditions.
Portuguese Parliament To Discuss Cryptocurrencies Bill
The Portuguese Parliament has scheduled a debate for next week to discuss a bill regarding regulations for the cryptocurrency market. The bill seeks to provide regulation of payments made in cryptocurrencies and to provide users with a safer environment for transactions. According to an article in the publication Jornal De Negocios, the session will also cover sanctions and ICOs. The aim of the debate is to allow more new payment options within the market, while making them secure and profitable. Such regulations would allow cryptocurrencies to be accepted within the country, which would benefit consumers and promote different markets.
The plan is for the bill to cover sanctions as well as mechanisms for users. The European Parliament recently decided to implement more strict regulations on cryptocurrencies to avoid money laundering and the financing of terrorism, so we can expect more countries in the region to start developing legislation.
JPMorgan And IBM Apply For Blockchain Patents
JPMorgan has filed for a patent which aims to utilize distributed-ledger-based systems to record payments sent from one bank to another. They join the list of major companies and banks who are now betting on blockchain technology. These include Santander Bank, BBVA Bank and others. One of the benefits of using this technology is the capability to ensure the validity of both transacting parties and transactions. The capacity and speed of the distributed ledgers offer updates with a verifiable audit trail, which provides an ideal storage container and processing tool for handling payment transactions.
Another major company betting on blockchain technology is IBM. The computer manufacturer has filed a patent which intends to use it to create a radio frequency identification chip. This would be inserted under users’ skin to make automated payments. The chip will work as a barcode, with the aim of the project to integrate an online wallet with a system of cryptocurrency payments within it. The insertion of the chip won’t be an invasive procedure and will not require electricity, only activating when near a scan reader, which will supply enough power for it to function.
Altcoins Had a Good Week
Altcoins had a good week. Ethereum (ETH) started the week at $680 and reached the $800 mark on Saturday. It reached its highest point of $830 on the same date but then began to drop, closing the week at $780. Ripple (XRP) started the week at 0.84c and went up to 0.92c before dropping to 0.89 on Friday, closing the week at 0.86c. They were also involved in controversy this week after a class action lawsuit was filed against Ripple Labs. Bitcoin Cash (BTH) started the week at $1390, experienced a bit of a drop but then went up to $1500 on Thursday. It continued to show growth through the week closing at $1700. Litecoin (LTC) opened the week at the $150 mark and gained about $20 throughout the week, before closing just below $170.