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A new report published January 9 by the European Banking Authority (EBA) has recommended further research into cryptocurrency and is calling for a number of actions to be carried out in the cryptocurrency sector throughout 2019.

The report delves into the standardization of regulations pertaining to cryptocurrency businesses operating within the European Union, and the EBA believes this is a much-needed move to eliminate unfair regulatory arbitrage and protect investors.

“Applicability and Suitability of European Union Law to Crypto-Assets”

In the newly-released document, Europe’s banking watchdog (EBA) admits that cryptocurrency and crypto-related businesses do not fall under the European Union law.As stated in the document’s summary:

Typically, crypto-asset activities do not constitute regulated services within the scope of EU banking, payments, and electronic money law, and risks exist for consumers that are not addressed at the EU level.

Now that the EBA has addressed that the crypto sector requires a new standardization of regulation to comply with European law, they have recommended that the European Commission carry out further analysis in order to take action.

The EBA is beginning to tackle the issue of cryptocurrency regulations because different cryptocurrency laws among member states would create undesirable regulatory arbitrage, unfair competition, and a congregation of crypto businesses in countries with less stringent rules.

Overall, the report is focused on the research and analysis of issues relating to crypto-assets and businesses. The EBA is simply calling for a nuanced approach to developing a regulatory framework with rules and standards for the emerging asset class.The EBA report noted:

Given the pace and complexity of change, it would be desirable for a technologically neutral and future-proof approach to be adopted in developing any proposals should it be concluded that EU-level action is needed.

Other Crypto and Blockchain Initiatives in Europe

While the EBA is just now taking initiative to develop a standardized regulatory environment for the cryptocurrency sector, other countries in the EU have already been addressing cryptocurrencies and blockchain technology.

For instance, 7 European Union countries have formed what they are calling the “Mediterranean Seven,” which aims to improve blockchain education, increase awareness, and spur the usage of blockchain technology across an array of industries.

This “Mediterranean Seven” initiative was largely started because of the EU’s struggles in gaining a strong foothold in blockchain and cryptocurrency.Another example of EU members taking blockchain and crypto into their own hands is the Italian government which recently established a 30-member blockchain advisory board.

All in all, regulatory clarity is needed in the blockchain and crypto industry so that businesses can flourish and investors can be protected. The EBA has addressed this need and we can expect to see some regulatory improvements as we head into 2019.

Do you think the EBA will actually establish any kind of cryptocurrency regulatory framework this year? If so, will it foster or hinder blockchain and crypto innovation? Let us know what you think in the comment section below. 

The world’s most popular cryptocurrency is a now a little bit more decentralized, thanks to the waning influence of Bitmain and the return of the anonymous Bitcoin $BTC▼2.39% miner.Blockchain research unit Diar has published new data revealing exactly who has been validating the Bitcoin network.

Analysts determined that mining pools either owned by or heavily tied to Bitmain (Antpool, BTC.com, and ViaBTC) are now validating far less Bitcoin blocks than this time last year.In fact, it is “unknown” anonymous Bitcoin miners who are currently validating more blocks than any individual pool.





“[Unknown] miners closed December having solved a whopping 22 [percent] of the total blocks, up from 6 [percent] at the start of last year,” reported Diar. “The Bitcoin network is currently less likely to experience an attack given the fact the BTC.com controlled pools have lost dominance over the network.”At pixel time, “unknown” miners accounted for more than 23 percent of the computing power driving the Bitcoin network (hash power).






Source: blockchain.com

Does this actually make Bitcoin ‘safer’?

Bitmain is the world’s leading manufacturer of cryptocurrency mining equipment, and has historically been a powerhouse of the Bitcoin network.

Diar reports that in early 2018, Bitmain’s mining pools accounted for 53 percent of Bitcoin’s hash power.

Theoretically, this would have allowed them to collude to take control of Bitcoin with a “51-percent attack.”Indeed, a reduction in their influence is surely a big relief for those wary of 51-percent attacks on Bitcoin, like the one suffered by Ethereum Classic that effectively led to $1.1 million being stolen from cryptocurrency exchanges.


For this to happen, major players such as Antpool and BTC.com would need to team up to control a majority of the network’s hash power. This would allow them approve, censor, or even rollback transactions as they please.

Diar conceded that while the threat of that happening may now be much lower, miners have no obligation to share details related to the pools to which they may be contributing.This means that some (or all) of the “unknown” miners could really be working with one of the larger mining pools.

… but the miners could be waiting for Bitcoin to bounce

The analysts also noted that miners who have turned off their equipment are likely waiting for an uptrend in Bitcoin‘s price before they resume validating transactions.Last month, when Bitcoin‘s price briefly jumped from $3,200 to over $4,000, the overall Bitcoin hash power increased for the first time since August.





This indicates a distinct correlation between Bitcoin‘s price and the number of miners who are prepared to participate in the network.Diar did warn that January’s growth in hash rate is unlikely to be sustainable, especially if the price returns to its now-typical bearish ways.

This means if Bitcoin‘s price bounces, mining pools controlled by Bitmain could come back online.At least for now, let’s enjoy the new Bitcoin with more decentralization (and less Bitmain).

Right now, the focus in the blockchain industry is on ecosystems and how to build them. It’s not something that happens overnight with a snap of the fingers.

When you’re working for a startup, it’s normal to find yourself with some responsibilities that don’t quite fit under your job title. And when you’re working at a startup in an emerging industry, it’s almost a given that your role won’t really jive with your title.

So, what do you do when your title doesn’t fit your role?You make a new one, of course.

Right now, the focus in the blockchain industry is on ecosystems and how to build them. It’s not something that happens overnight with a snap of the fingers. So, everyone has to combine a number of different elements and strategies to help build and maintain our ecosystems.

Which is why I finally sat down one day and wrote the description for a new position, one unique to the industry: Chief Ecosystem Officer (CECO).

Here’s why I did it, and why every blockchain company should seriously consider hiring one.

The Road To The CECO Role

After getting involved in the blockchain and crypto industries, I spent a lot of time working on educating the market about blockchain technology. Most people didn’t know what it was, they didn’t know why they needed it, and it was difficult to get media coverage for the industry.

In 2017 and 2018, blockchain found its way into the public sphere. The explosion of ICOs created a new awareness in the market, but it also presented a number of challenges. Instead of simply trying to educate customers about the benefits of the blockchain, I also had to begin actively battling misinformation.

Many people had a vague knowledge of blockchain or Bitcoin, but they were being bombarded by what I would generously call less-than-accurate information.

So, I knew the space needed to focus more effort on thought leadership, education, and helping people understand what they could and couldn’t do with the technology.

Because honestly, you can send around as many infographics as you want, but the information doesn’t really click with people until you begin explaining use cases and showing them examples.

The issue was that a lot of this work felt like pure marketing. I had moved from the position of Chief Product Officer into the position of CMO, but I knew that a traditional CMO title wouldn’t really fit this industry or my own capabilities.

There’s nothing conventional about what we’re doing in this space, so why use a conventional role?That notion was the spark that created the CECO role.

The Responsibilities Of A Chief Ecosystem Officer

The CECO role is a combination of business development, growth, marketing, thought leadership, product development and business model development. 

With such a large number of potential responsibilities, it’s easier to break the position down into three main components:

1. Ecosystem Acquisition / ConversionThis portion of the job is a little more like tradition enterprise business development, but it also mixes in evangelism—which could be anything from consulting or outreach to education or requirements gathering. The CECO will also handle inbound requests and working to convert them.

Outreach includes meeting with people who have the potential to be “ecosystem champions.” These are individuals who hold leading positions in an industry with strong potential use cases for blockchain.

2. Ecosystem Incubation

This portion of the role deals with internally incubated ecosystems, businesses and tools.It's important to note that all of them are exactly alike. For example, some companies build and launch ecosystems internally for use by one particular industry, while other ecosystems are built on top of existing protocols.

So, the CECO is responsible for a range of ecosystems and initiatives that have to be cultivated until they can stand on their own two feet.

3. Ecosystem Growth And Retention

This part of the CECO position involves technical evangelism, as well as generally ensuring the developers running ecosystems on top of your network are aware of what’s going on.For instance, let’s say in a few months you’re launching a protocol to automate payments.

That protocol release will involve standard marketing elements, but it also needs to include education about the protocol’s potential. Users have to be shown how they can be creative and incorporate the new protocol into their ecosystem and improve their business models.

The Skill Set Required To Become A CECO

The CECO role requires a lot of creativity, but it also has a strong analytical aspect to it. I think the role is ideal for someone who has a mix of experience—someone who has started or scaled companies but who is also capable of working creatively with product design and development.

On the one hand, looking at hundreds of potential inbounds requires something similar to an investor mentality, examining and evaluating the potential growth inherent in each.You also have to be creative enough to envision capabilities within the ecosystem that simply weren’t possible in the past.

The position is very cross-functional and involves a number of different skill sets. Eventually, I envision teams will grow to include all of them. Business analyst, customer acquisition and conversion specialists, ecosystem managers—they may all fall under this umbrella.

The creation of ecosystems is an integral part of building a successful blockchain company, and I’d encourage any business in the space to begin seriously looking at their strategy for doing so. Hiring a Chief Ecosystem Officer is only one step, but it’s a step in the right direction.

I am a technology entrepreneur, engineer, and academic focused on blockchain technologies. A reformed gamer, I started studying virtual currencies in 2009 while writing my undergraduate anthropology thesis on currency exchanges in the virtual world, “Second Life.

” Since then...MORE

Disclaimer: Any opinions expressed are those of Samantha Radocchia and not those of Chronicled, Inc. This information is for educational purposes and does not constitute financial and/or legal advice.