WCM #5: Trading and global cryptocurrency regulations by bitFlyer



hello and welcome or should I say you come in and sweet nice to be here thanks for welcoming us actually this is my first ever time through Conant and already we beaten dumplings and potato pancakes although it was through the airport I think that still counts it really helps me here we've got a few things to talk to you tonight about which Sonia has very kindly summarized for us already but first of all does anyone want some free Bitcoin ok so you can have to work here I'm afraid I'm gonna let Fabiana explain our little Bitcoin giveaway promotion yeah sure so yeah we thought how could we make it a bit more interesting or get people more involved so yeah giving you eight links always works I've heard that from Sonia as well so let's fry it so yeah we decided to do a bit go and give away so we're giving away to nine specific winners so and she can reach the person who did we think made the most funny creative tweet will receive three bits gone worth 100 euros three people who get the most retweets on a tweet so get their network involved will be awarded with free Bitcoin worth 50 euros and then five people who made the funny creative tweet the game will be awarded with free Bitcoin worth 20 euros so how to enter this competition during the event send out a tweet about the event order presentation and use first of all the hashtag bits by opponent so bf Poland and tag it like you shown it on Twitter account so another thing in unlimited entries each – it counts as one entry and the deadline for today and basically entering this giveaway will be today 11:59 p.m. so yeah we will ultimately pick the witness on April 12 2015 9 p.m. so that's tomorrow and then you will get contacted shortly and the last step in order to actually claim this you of course will need your bets ie you account and the free Bitcoin will be transmitted so yeah these are the steps hopefully everyone will enter this giveaway and looking forward to it thanks man yeah we've totally funds difficulty realize they treat ourselves on Andy Bryant I'm the CEO of this buy in Europe and my colleague over here is Ricky our master day we're gonna divide and conquer tonight I'm going to start by talking briefly about mid flyer why not talk about that's too much because we've also got some other content view Ricky is going to talk about regulation of icos and then after the break I'll talk a bit about our blockchain and the way we see doctrine headed in general and then finally key on over there what we talking to you about trading but to start off like I'd like to take a step back at the beginning just like getting perspective of where we are in the Bitcoin space those my friends are already saying to me oh yeah this way too they read mr. bone there's no point investing a Bitcoin I like to recall that like Bitcoin right now I mean there's calm down a bit of course recently base total market cap is like 120 billion and all of crypto combined is 260 billion now that means bitcoins are only worth like one and a half Warren Buffett's it's only like a seventh of an Amazon and you can go much further physical gold a trillion stock market it's still really in very early stages and I'm personally I'm not a big Bitcoin maximalist but I think it helps to get some perspective to see exactly where we are in terms of bitcoins growth in the last few years Bitcoin and blockchain has come a long way these are some of the events that we a bit flyer thinkers are more notable in terms of the history two of the things which we think was most attributable for bitcoins growth was when Bernanke Ben Bernanke the ex-chairman Federal Reserve came out as the positive stance for the Bitcoin and then the other thing was when the Japanese government revised the payments act or okay the fund settlement law to actually legitimize Bitcoin as a payment method in Japan as well as that we've got those things like Magnox theory of I CIO in 2015 and more recently a bunch of virtual currency exchanges in Japan have gained at official registration and if we focus on Japan a bit more closely of course we have the mailbox incident in twenty fourteen years later Japan recognized Bitcoin as a legal payment option in like July 7th 2017 a lot of stores in Japan started accepting Bitcoin as an actual payment method in store and we'll talk about that a bit more later 2017 was a milestone in terms of the Japan FSA approved 11 virtual exchanges of which we were on number three on the list but we were on the very first letter that went out in FSA but then it's not without its eyeballs I mean coin check hack Quinn check hack in 2018 January is just another reminder we're still early terms of people like to about Japan I mean it's kind of far away and and you know it's kind of not close to fun of mine from beneath you just in Europe in the US if you'd be now you'll probably notice that there is quite a thriving crypto culture from example Mon a coin which is kind of like the third coin of Japan which actually is listed on the bit flyers exchange but other things too like there's actually a J pop band from virtual currency girls which is dedicated to quick doing good to cut currencies and I every single one of these bad members you look last year but I they named after cryptic artsy so they use Bitcoin is Bitcoin cash in the end if you search them online you can find some pretty hilarious music videos other things like Bitcoin accepted in Japanese shops you really can like going to shops in Japan and see like big science like it's Bitcoin plastered all over the place and then there's TV commercials here's bit flyers TV commercial in Japan which as far as I know is one of the only TV commercials that have gone out based on crypto currency and as you'll see it probably wouldn't work so much in the in this market very effective yeah big boy really is a bunch of minds and it within people's eyes in Japan whether it's Bitcoin science in Shona shops as a method of payment we AB if I have a payments business where we can wear all the time integrating with new companies to help them facilitate Bitcoin payments one example is we've recently engaged with ETS which is second or third largest agency in Japan and then it all sort of comes back to this the so-called idea of mrs. Watanabe mrs. Watanabe is the kind of the image of like retail investors in Japan in Japan Lee there's a lot more interest and a lot more engagement from the retail community in investments and it kind of all goes back to this idea that while mr. Watanabe is at work this is what an outrage at home for the managing the household finances and as a result there's there's been a really historic and kind of long-term propensity of Japanese housewives to trade in the foreign exchange market for example so it's kind of like a built-in built-in culture Japanese yen as a as a currency pair has been dominating trading for a while like this day just pointed out just for the last three months of of 2017 as you can see it basically dominates most cryptic traders a big my trading too and then if we take the check please market and break it down into two exchanges like a flier has a dominating position ever since a couple of years ago the yellow bar is is our trading volumes over time and that might explain why by some measures where the largest exchange in the world in terms of volumes here's a ranking of us in terms of not just Bitcoin but all digital currencies and then domestic share a lot over 24-hour period but what I should mention is that this counts like two things that counts our spot markets but also our FX we could have bit for FX which includes leverage trades so if you count leverage as when a spot they're like we dominated the market but some measures exclude the leverage which means the rankings are a bit different of course we'd like to look at this so just in terms of numbers 2017 we traded 250 billion worth of Bitcoin and other cryptocurrencies and actually the year to date for January to November was 100 billion so just in half of November and December alone we had a hundred fifty billion a volume because there was such a spike but in general where we're facilitating over 50 billion month trades and we recently announced we've reached two million registered users so why have you never heard of us well our story in the EU we got we actually were incorporated in 2014 and we were live you know later that year in terms of milestones our CEO and Founder user canal has been very instrumental in guiding policy and guiding the debate about Bitcoin in terms of regulation in Japan he actually was responsible for forming jada which is an association of digital assets back in October 2014 and he's continued to be very involved instead in fact he was he was a key brought your payment key role in actually drafting the change to the digital payments Act in Japan the big camera partnership became a being the largest electronics retailer in in Japan was another big master and that's where we integrated our famous technology so that people spent Bitcoin in their stores and then more recently the u.s. launched in November from San Francisco office and the EU is a couple of months behind them so January really this year was was when we established our main footprint in the EU so we're trying to repeat your success in Japan but little by little that's probably why you haven't heard of us yet but hopefully this next year will be a household name it's been the in Japan we have 50% households brand recognition which I was talking about payments earlier this is a short video about to me how it might pay works this is in a big camera store so there were lots of companies out there that are offering so like Bitcoin debit cards Bitcoin cards and so forth but they're not really the way they generally work is you have a debit cards and you top it up with Bitcoin and the point you talk about it gets converted a fee F then it remains on the Carter sphere and you're transacting for the a little way it's only really in my mind it's only really when you integrate with the point of sale that it's truly a Bitcoin payment when you go to go to a shop pick up a toaster and say okay I want to play a big one right now and that way you're not really exposed to having a prepaid card which is fluctuating a value of course the value fluctuates a big point of it the exchange is happening at the point of sale so here's example of how it works what do you need is a iPad in the store so it's pretty seamless integration and it's just one of those sort of slightly more interesting recent developments is we just announced again on the payment side a new integration with law cardio which is a luxury car dealership in Japan which are now using the fly technology to facilitate Bitcoin as a payment option so you literally can now buy an Ambo using Bitcoin and finally before I am just introductory a bit flyaway we do try to get involved with many of the regulatory developments we think that regulation is fundamental to the future of virtual currencies and we try to set a global standard in this regard and so one of the things we were involved in is actually developing actual cyber insurance policy with victory Sumitomo which is the second or third largest insurer in Japan because we think this is a key component of customer protection consumer protection going forward so that's enough about us I mean I think it's about train without talking about regulation and it's possible still that regulation at least bringing out paisios so I'm going to hand over to Rick I'll tell you – this next section thank you careful thanks addy I had everyone this is very clear from before I am CEO of fire Europe and this is also my first time to come to Poland and so far my experience is great except for traffic jam but I love this country ok so I thank you so much for your time today and then let me talk a bit about regulations and icos so first of all let me ask one questions before this event how many people have actually ever heard of big flier that's more than I expected ok and how many of you actually have account with big flier great one okay great great thanks so yeah actually just mentioned we just got licensed in Europe as a payment institution Luxembourg in January this year but at the same time I we also have a registered as the virtual currency exchange in Japan based on that so-called cryptocurrency though and then also we are regulated in the US and every we are the one of the for a licensed exchange by a licensed find new york state so we believe that the compliance is one of our key value and then the regulation that appropriate regulatory framework will support the further development of this industry and so why Japan has been advancing the regulatory framework actually like in Japan has a so-called virtual currency Act which is precisely the main mental payment Act so now the Bitcoin and other virtual currencies are recognized at a considered as a payment method and then if you want to operate virtual currency exchange like us in Japan or to japanese resident union license and then there already I get 16 exchanges approved in in Japan but then there are more than 100 application waiting in the pipeline ahead of the curve and the the very first incident we had in Japan was probably most of you knows about Mong Kok so Montauk's was incorporated in Japan and then I assume in our they got bankrupt and in that made a Japanese regulators aware of Bitcoin and then necessity of regulation and thus industry to protect consumers and a and then a the father of before I used okano also playing an important role in bobbing the governor's lawmakers and then we stayed and then Japan actually implemented the new law which is called virtual currency go which specifically regulates a virtual currency exchange activity and as nd earlier mentioned like a the Japanese people especially in an FX trading market and they are pretty ugly like a retail consumers are pretty active in these market so it also further enhance the regulatory more framework for this business and if you look on top wiggling tree is snapshot in Asia there's no clear regulatory like a situation like it's a bit difficult to precisely describe this but it's a China like we all remember that China recently abandoned icos and exchanges and so on so forth and then in India it's also illegal but of course Japan is in the green and then this is the overview or regulatory situation of Europe but actually I I want to ask some of you to volunteer to talk a bit about regulatory situation for cryptocurrencies in Poland as I heard that there are quite recent activities and this is a from this point of view Thanks yes again there is no clear parasite the clear situation is it's not really clear whether the cryptocurrency is legal illegal because it's also depends on how the cryptocurrency is used like trading is okay but payment is not okay it's also full and the next thing and also I'd like to talk a bit about like i ciose although the the first the biggest topic in our years and 2015 was probably like overstock fundraising but after that a especially the second from the second half of last year like IC o—- is becoming more and more popular and then actually it's funds raised via IC o—- is much bigger than VC funding and and also in this year we just got a huge announcement from telegram it was like a more circular 1.7 million funding but these all happens quite recently so this is to show how the ICO funding evolves so let's take a minute to see what's going on so in 2014 we didn't have a lot of ICO this will be just like a 1.8 million and in late laters 2014 it came like roughly 2 8 10 Millions but for these years demand is not that big it's just like a couple millions and then it continues 2015 second half of 2015 stays on coal activity then now it's 2016 a SIL small amount fifty to fifty eight million and then a we got Dow project and then it suddenly the total cumulative amongst come close to three hundred million but then 2017 which are so then second half of 2017 the Stanley the cumulative amount grows yeah so this is now where we are so in many countries I think most of the countries there's no specific regulations or these it's been regulation for I cos if I take an example of regulation ICL regulation in Japan it's also same there's no specific regulation or law which specifically regulates ICL is Seoul but depending on the nature of IC or scheme of the IC o—- it may become under the regulation of existing law such as virtual currencies virtual currency on low or like a payment act a consumer contract low its own support so if something you want to participate in IC o—- or even if you want to do at an IC o—- in japan or two japanese ritalin it is really important to understand what kind of regulatory framework you need to understand all you need to be aware of then we can roughly speaking we can categorize in Japan the IC o—- into four categories sofia fiat currency type IC o—- virtual currency type IC o—- dividend type IC o—- iman is i buy co and no reward type IC o—- and based on these five categories there are multiple different regulations and as I said Aria it's still unclear and then there's no specific regulation for IC o—- but the making rule is really important to further enhance the development of crypto industry so there are multiple initiatives in Japan to set the rule to I can properly manage IC o—- project and provide a proper legal framework so that we can more like and develop this the ICL project in Japan and then this is also one one of the initiatives the founder of beef I am participating as technical adviser and so there are some initiatives going on and then I think now is the time to stop talking about regulatory stuff and talk about a bit more fun stuff it's a fine yes and just to mention that after the break we all have fewer presentations from been fired and I appreciate the people who have different levels here so I don't want to on the basics but just to cover all our bases we'll start at the beginning so blockchain the simple definition is it's a shared a shared network database it's a new kind of database where data can't be tampered with it repairs itself it doesn't crash and the key thing is that only information that's agreed upon is recorded to the network the GBA which was founded or co-founded by our CEO has like a slightly more technical definition they talk about Byzantine fault tolerance uses large number of nodes one consensus and it's got a probabilistic method consensus where over time the probability of the transaction reversed approaches zero and all of this poaching stuff come all came about in the frame context than the Byzantine generals problem now I try not to get too technical about this but the way I imagine the middle the reason it's called the business plan generals problem is it goes back to a kind of our old story a mathematical problem that imagines a business wine attack a bunch of generals surrounding a city all surrounding in different places and the attack what only succeed if they all attack at the same time otherwise their attack will be repelled and it will fail so the only way for the generals to be coordinated is send messages to each other in advance basically saying yeah we attack at dawn at 8:00 a.m. chocolates by the time you send a messenger through the city to get out the other side or around the edge to deliver this message the message can become corrupted so how do you make sure that the coordinated timing is in fact the truth like the real truth and this is a problem that kind of stumped mathematicians for quite a while and it was kind of solved by elegantly with with Satoshi nakamoto's well chain and that's really that's really it I mean if when you have a broad changer but distributed record of transactions and the idea is even if you have bad actors that try to corrupt the message the fact that you've got so many copies of it distributed its shares means that I can't be done and then proof-of-work just keeps everyone honest and the way we have been prior think about like what actually why are people getting so excited about blockchain I mean it's not just the speculation on cryptocurrencies like the technology is obviously very powerful and we're kind of flat in line with the World Economic Forum's view so you know I won't talk to you at length but by giving everyone like a copy of the ledger it means the reconciliation becomes much easier you don't need to sort of track multiple different there just to make sure that ownership is being tracked properly efficiency gains in terms of real-time monitoring like if you have a regulator and regulated its entity the big later doesn't have to at least be asked for information they can just sort of track on the blockchain it can order the blockchain themselves and then there's other things like one thing I quite like is the quinidine capital improvement this whole thing about a cos I mean yeah it's kind of a crazy bubble but in principle I see as a not just some speculative instruments for device use I think it's great the father it gives new types of incentive structures where somebody can actually be rewarded for being an early adopter of a new project I mean that wasn't really possible with its typical shareholder structure you would get any gain from being one of the first hundred users of Twitter but if you somehow like got some steak in Twitter's network in that early stage then over time like that so it creates these new incentive structures that allow us completely new business models and then of course wait until now people like you and me didn't really have access to these early stage investments it's really for VCS only wears now like anyone can can access these types of VC style opportunities and have liquidity in their investment so it doesn't get tied up for like ten years like a typical VC investment so anybody drivers then how do we turn it into use cases so this is kind of how we see the future of blockchain obviously you're kind of right now we're like here with I feel like doing this once you have like a token of value and a way of registering documents then that facilitates like the sharing economy so now you can track assets and feeds on them on the blockchain through small contracts where you can get sort of transactional controls and contractual controls allows things like wills automated automated logic and algorithmic Rosamond programmable contracts IOT so forth and then once we start getting into the supply chain provenance of goods like checking the diamonds or not blood diamonds checking the authenticity of your meat checking that your lasagna is made of course like it was in the UK now some scandal and really like this huge potential so convert yen to US dollars you divide by 100 roughly way so we think three trillion US dollars and that's only like by 2030 is the market opportunities or blockchain and I'll just talk briefly about like our block chain a bit fly us over a bit fly we have to where we have a few businesses our main businesses of course the virtual currency exchange where we have a more professional version of the platform called lightning just kind of living like two ducks and then we have like a much more b2c consumer friendly if you buy sell feature as well as well as the exchange we have Miyabi which is our own private enterprise blockchain and then we have the payments business as well as mobs army have your products as a bunch of patents which makes it like among one of the few private blockchains to have that kind of ability and we think it's the world's fastest performance so capable of up to two thousand transactions per second and on the right hardware up to six thousand transactions per second and that's with the real payload I mean there are some lot of chains of sale we can do like way faster than that but you need to benchmark your property and when you benchmark these types of transactions with the same payload we truly believe that Isis is top tier we've developed around consensus algorithm execution engine and other common components and in terms of some of the properties these are the main ones so distributed availability means basically it's it's resistant to disasters you can still access it even at large segments of the network goes down immutability I'm sure you're more familiar with you need to be able to make sure that data once recorded can't be changed or at least by a bad actor isn't time fault tolerance I described earlier no single point of failure of course this is a key one you want to make sure that it's resistant to two things going on and then the last one which is be harder to read is I highlighted its finality so when you're working in financial services industry or in financial services clients fine art is really important like with Bitcoin and other public brought chains they have like proof of work they have like a probabilistic algorithm which means that you know the more blocks it goes down the chances of transaction being reversed increases like ever closer to zero but it never quite gets to zero even though it's like vanishingly small chance that's still not good enough for many of the institutions we talk to but they really need some finality and that's like one of the key things which separates us from the rest in fact we try to map we try to map this on this diagram like development of databases that starts at the top we've got different types of database right there's like key value graph object orientated and we weakly block chains within the same topography so yeah if you add distributed networking basically not Apache Cassandra if you then add immutability then we've got the are three projects still not isn't time for colouring though so you want to add that and now we're kind of in this which includes still includes public blockchains but also includes financial fabric and the abbey as private chains the difference between hypernatremia B is no single point of failure and then once you get down to that level the only difference really between my ABI and these is that we have finality whereas other block chains do not so that's not really a good thing and it's not just upon the drawing boards I mean we do have real world applications and projects going on with miyabi I mean there's loads going on that I can't tell you about but one of the things the country about is we were selected actually as Aparna vendor for the Jap Japanese Bankers Association or gbas collaborative watching platform jba is basically the network through which all of Japan's national banks communicate and settle so it really is like you know national level project and we were out with any ways such as NTT DATA ataxia Fujitsu and actually we were the only sort of startup a medium-sized company to be included in the project so we're pretty pleased about that so that ends the section on trading so thank you again and I'd like to hand over to Keon he's going to talk to you a bit about lightning and training on lightning which is our professional trading platform thank you thank you Andy so my name is Qian Simon I'm an intern here at bifilar Europe and I'm going to be discussing the trade important with this presentation so here a bit flare we have a saying it's we love traders and that's our several reasons first of all we believe that we have a professional platform that is top-of-the-line in the industry and has several features including profit loss conditional order types a wide array of indicators and overlays as well as an API and it was designed by former Goldman Sachs traders for traders so five traders for traders and we really do love traders our customer support strives to be top-of-the-line as well as our development and of course we are we like to do everything we can to make sure that we are the most regulated exchange in the world so here's a screenshot of the Lightning training platform as you can see we have the chart in an ASP window execution history as well as the daily profit loss and we even have a little chat room where you can talk with your fellow traders and updates of current news and events that are going on that could possibly affect price this is a simplified version of our trading platform we call it by yourself and through here you can buy Bitcoin as well as other off points so this is better for people who are just beginning or trying to learn or people who are kind of overwhelmed by the amount of data and indicators and all the crazy stuff going on on lightning so this is a good place to start if you're just getting into it or if you just want to keep it simple it's also available as an app so before we get into the order types I like to use this analogy of a school system we're gonna start simple and move our way to more complex so you guys are all in kindergarten and we by the end of this presentation hopefully you all graduate trading university and this chart will stay on during the trading slides so that everyone can know where we are and before I continue I just wanted to ask how many of you guys have ever traded cryptocurrencies of any kind okay how many of you guys have placed a stop order while trading okay and how many of you guys have placed in IFD Osio order well trade oh okay we got one alright well hopefully after I go over these maybe some of you guys will be interested in looking these up a little bit more and trying them out for yourselves so first and foremost we have the market order it's the simplest order type this is this order is good for when you want to emphasize the execution of the order above everything else so if you're really trying to get into a position and it's regarding or it's irrelevant for you like if you if it's you know plus or minus a couple hundred dollars if you really want to get into a position this is the fastest way to do it you just put a buy order and market or if you really want to get rid of something you just put it in a sell order with market and that'll just execute the order for buy at the lowest price available at the time that you place it and for so it will execute at the highest price available at the time the places oh and this is the fitness window and through here you can see what trades are going on and so the ass window is what people who are so in the big pointer or other cryptocurrencies are asking a for the price that they're asking for and the big window is what people are bidding for the price that people want to buy the specific currency at and the difference between the ask and the bid is called the spread and so it's always good to take a look at what the spread is before you put in a market order otherwise you might get surprised with what price the order executors moving on we've now graduated to elementary school congratulations everyone give yourselves a pat on the back so this is is only different from the market order in that there's one parameter and that is you can set it the price that you want the order to execute at and so this gives you the advantage of more control over the order so you can set say I want to buy Bitcoin at 7,000 if you're very specific about what number you want to execute your order at then a limit order can do that for you the disadvantage might be that it could take a longer time to execute if there's no orders available at the price that you're looking for so yeah next we have a stop order very similar to a limit order however instead of a price that you set you've said what's called a trigger price and the trigger price can be higher or lower than the market order but once the trigger is hit an order is then placed at market so you set the trigger price say I want to execute this order I want this order to go in at 7,000 once the last market price hits 7,000 a market order is then placed and that could vary based on what's going on in the trade but moving on we have the marriage of the stop and limit orders into the stop limit order type and so this combines the parameters of the limit and stop word so you have your price and trigger price and so now instead of just saying oh I want my Bitcoin to sell at six thousand you can say I want my Bitcoin to sell at six thousand after it passes fifty nine hundred or if you're selling say I want to sell my big point at seventy one hundred after it passes seven seven thousand fifty so this gives you a little bit more control while remaining relatively simple and again the advantage to that it gives you more control over the order and disadvantage would be that it's possible more executes if there's no orders available for that price now we have a trailing stop the trailing stop order is basically very similar to a regular stop order except now the trigger price or offset price will automatically adjust to the market price and so I'm bid flour lightning we have dollar a pound amount or dollar amount or euro euro my mother and basically you can set the advantage to this is that you can set your trigger price and I mean your offset price and then it'll automatically adjust as the market fluctuates and so if you do your research and set this correctly then you can pretty much set one of these orders and leave it beat and maybe check it tomorrow so it gives you some more flexibility a lot of people will have several of these orders open at the same time and will adjust accordingly so now we're gonna move into conditional order types in my experience I think these are unique to the fire lightning I haven't seen these on any other trading platforms that I've used personally so the IFD stands for if done order it's a pretty simple condition basically you can set your first order which is your primary order and it will execute a second order all if and only if the conditions for the first order are met so this can be very useful for people who want to plan a couple steps ahead and people who have done extensive research and know what's going on or if you're just trying to test the waters and see like what what kind of things are going on it's very useful for entry points by setting your profit target first and you can also use it for stop-loss but let's keep going on to the next order type which is the osio and the OC o is similar to the IFD in that it's a conditional however instead of now one order being executed after the other you either have you have a either-or or you just have one so you said two orders and once what the conditions for one of the orders are met the that order will go through and the other one will automatically cancel so this is very useful for volatile markets or two for risk management and making sure that you play it safe or just in case something happens that you weren't expecting and then next we can talk about the IFD or Co which is a combination OC use case so one example that you can use the OC o for would be a bracket order and so you could set a limit order and a stop order next to each other and depending if your calculations are right you can take your profit and if things go unexpectedly you have your stop-loss serving as a safety so that you can limit your losses so this is pretty cool this is the IFT of CO otherwise known as IFO and so this is a marriage of the IFT and O CO of course as you can see you can set any kind of parameters for these so you can have a market order for your IFD and then you can have a stop limit and failing before you go so yo it's really all up to you but this is a this is the most complex conditional order type and it's very useful because you can use this to really minimize your risk and also make sure that you realize the majority of your profits so let's talk about an example of how you use this if' doco so let's say that you're trading Bitcoin and it's fluctuating around 5,500 euros so and you're bullish on Bitcoin so let's say or in this scenario we have a place stop order at 6000 euros and then we set the oco-2 1 for taking profits and 1/2 stop-loss so since we set the first condition at by at 6000 once the price at 6000 that will be executed and then we wait and see for what happens after that and I guess if your calculations are right you would take your profit at 8000 and just in case something else happened like many of you know I cook the currency markets are really volatile in general so you have your stop-loss just in case things don't go as planned personally I really like the if' doco because you can just make sure that you know you don't lose too much when you're trading and just really quickly on all order types we have these execution parameters by default you have the GTC or good to good till cancel and this is basically when when you place an order it will stay open until it's either filled or until you cancel yourself so this is the default on all orders and then you have your filler kill or immediate or cancel which are pretty similar the only difference being that the filler kill when you place it if it's not filled in its entirety the second that you place it just be canceled and the immediately cancel will allow a portion that order to be partially filled and then will be cancelled even though it was only partially filled the filler kill is useful for finding hitting the quick liquidity so you can maybe discover a price point that people don't know about and then the mediator cancel is useful for testing price points so for example you could be using a mediator counsel to be testing different price points and once you find a good one you could then be putting in more filler kills so technical analysis what is technical analysis so technical analysis is basically the science of price action and traditional finance this is way more established people have been using this for a really long time and stock markets and all that and we people have adapted it to use it for crypto even though there is no established like method of technical analysis for crypto people have still done really well in adapting it for it and like in traditional finance you use you know market data you use financial reports balance sheets to make decisions on what stocks or investments you want to make a you know price act or technical analysis doesn't include any of that so in the same way in crypto technical analysis doesn't really include white papers or the you know usability of the blockchain or how good the crypto it really is we're really just looking at the price action and making decisions off of that to forecast future movements so here's a couple of screenshots of the indicators and overlay overlays are available on bit flower lightning as you can see there's a bunch of stuff on here and I'm assuming that most of you have a pretty good idea of what most of these are however some of these are pretty complicated and explaining all of this would probably keep you guys here all the way to the morning so I'm not going to do that and I also can't do that so I'm just going to talk about the ones that I use personally and that I think aren't working so the three that I started with and the three that are my favorite are the MACD RSI and Bollinger Bands so the MACD is used primarily to indicate strength and direction of price trends it's calculated using the 26 day MA – the twelve days EMA which is the exponential moving average I think and the signal line is used as a reference point you look at the MACD line and whenever the MACD crosses over the signal line that usually means that things are looking foolish and whenever the MACD crosses below the single line things are usually moving bearish then we have our ISI which stands for relative strength indicator not to be confused with relative strength so the RSI is very often along with the MACD the default indicators that are on most trading platforms they can be used very well and then the RSI is more for indicating momentum so you can use it to see when an acid is the overbought or oversold whenever the our side crosses above 70 that's usually when an asset is being overbought and could future drops and when it crosses below 30 that's when an acid is usually oversold just a quick note none of these are absolute you know there's a reason why people use multiple indicators in conjunction with each other especially Bollinger Bands these are invented by John Bollinger and these are mostly is to indicate volatility and these as long as as well as the RSI these can be used to identify when an asset is overbought or oversold and if you guys want to learn more about these there's really great sources out there including the ones that I use for this presentation one of those would be investopedia.com they have really good tutorials on all the different indicators and overlays and believe it or not Wikipedia actually that's a pretty good content on this as well so the thing is is that these look really intimidating and technical but if you really can learn how to read them and use them to your advantage without understanding them at like a really deep fundamental level so even though you maybe wouldn't be able to explain it like a college professor to someone else you can still use it too as a indicator for when you want to make your entry on entry points on a asset or exit points and that concludes our presentation thank you all very much one quick note we do have a competition still open I believe that only one or two people have entered we are giving away free Bitcoin so I'm not sure why that's a thing but be sure to enter there's going to be first second and third place and then an additional five winners so a bunch of people could win a bunch of free Bitcoin tonight I mean who doesn't want an appreciating asset Afghan so we want you guys to ask us some questions about anything we've talked about this evening I believe there's also something edge help answer some questions about the recent changes to the tax regime here opponent Steffi not our field of expertise so I think what we'll do is we'll take questions first and then after like no further questions they know I'm over at that stage so any takers together though okay so can you tell us more about finality in your watching sure I am NOT on the protein engineering team so like I can't go into the technical details but we can maybe take it offline finality unless someone modifies when the lock is joined it is you can say it's final unless it will be invalidated later right so in your box yeah once the transaction is that it's the me IP block chain it is 100% final so there's no like decreasing probability of reversal it's an irreversible sorry could you be because you have normal notes and abnormal notes right so what if they know what you don't have just added is the upper one note we do have is entire fault tolerance as well I have a question about the US market because I saw that show didn't have the license in all states right and my question is like is it like way harder to get a license in those states or the date would do they not provide any license at all so is it mixtures so far we've secured licenses or at least the right to operate in 43 states now that doesn't mean we've got a license in every state because actually there are some states where you don't need a license but you can still operate all right so right now we've got like ability to operate in going to be staying and yes like most of the ones that do require license there is usually a money transmitter license from the meadow you know the prospective state regulator the hardest one to get of course was the bit license which is the New York DFS license where we were only the fourth company to ever get one after all coin basis circuit and the first overseas company ever to get one but yeah that was quite a big big task all right and do you think that the states in the future will change they did a lot that there were like one global ISO for the whole USA I mean on the federal level or you did you have to like go to each state one by one and ask for the license yeah we have to do that one by one but to be honest I think in the future it won't be a question of like crypto regulation and normal regulation like it will just be regulation is it'll gradually all become intertwined into the same thing so we don't see like some verification in the regulatory regime we just see it all gradually integrating over time as the state and federal regulators come to understand blockchain more deeply thanks state-level regulation but this is not about crypto specifically but more about regulation generally new us hi I have question about the Mia blockchain you solve some numbers for the better benchmark and thus disruption supports only simple value transfer transactions or smart contracts and what kind of transactions were involved in this event one we absolutely support small contracts and not just simple transactions so we have a data structure that can support all sorts of different things it's very flexible to different cases down analysis question Thanks I have seen that you offer leverage trading on your platform economically leveraged trading is a contract for difference yes CFD do you what is it like did you like register to become a as a CFD or yeah our presentation was a bit confusing but the services we just showed here is the service platform in Japan and then as a big fire Europe sa Vietnam yes providing the labor is trading and then this may or may not fall under the regulation but we are still investigating in and still in that in a discussion phase so we do not saw this product in Europe and as a European citizen I can only register on your your I cannot register if you want to if you were really interested in a CFD trading or leveraged trading talk to me like that there is a way thank you for bringing us to university it was just don't know if I have to ask you guys or the guy was asking about trading because one of the biggest challenge I always have is like how much of the trading is basically a non-technical part and how much of that is basically going back to the emotional part of that right because I just see sometimes like from technical analysis I know something is gonna go low and then tomorrow somebody says oh because Russians deep and the icos then the price went down so I was like how can I just start putting the stop-loss or something that tomorrow all of my technical analysis is going to be somehow you know it be effective with all those elements okay so the topic of my fundamental versus 10f analysis is like will take us we could talk for hours about this I mean personally I think that like I would take a balanced approach like technical helps to risk management and fundamentals health for the long term yeah I mean at the end the day like Bitcoin another's negative assets they are subject to wild price swings it used to be a lot worse I feel that volatility is decreasing but we've got to remember that like like I was saying in one of the very early slides Bitcoin as NASA still really small place so I like to kind of liken it to a digging on the open sea you have like the foreign exchange markets where like trillions and trillions of dollars of trade it's like every hour every day or at least like hundreds of billions and if that's like an oil tanker on the sea you can imagine like waves of money coming and going and the ship barely budges right with Bitcoin it's like a tiny little boat so the same amount of money flowing backwards and forwards causes it to go up and down way you just can't I can't handle that are in flux so it's true to say that it doesn't think much everything's like a small rumor or some small story to potentially cause like a big price change because it doesn't need that much money flowing it out for that bad I think what a density will decrease over time I think instruments like the CMA and the CBOE futures like ETFs which are going to come online soon a lot of institutional investors waiting on the sidelines until Bitcoin and crypto became something more comfortable they're happy to deal with these kind of trends will lend itself to lower volatility in the meantime where we can still expect certain amount of rollercoaster ride quality and it's all from compliance point of view thank you my I may need to mention about as although we try to build some features we have some features to protect some like a trading loss but at the same time we are now in a position to give you an otherwise of the investment so but your investment is still I belongs to your own responsibility so please be careful of it any more questions okay hi guy said with a question how many coins will be on the beat flyer exchanger it will be only Bitcoin litecoin there will be more tokens or points what are your plans so we currently offer only BTC euro currency pair but this is because we just launched our service and in Japan we offered BTC BTC JPY and a btc-e stop therapy TC a Bitcoin cash BTC and also some other yeah crypto appears like litecoin Lutheran classic and water coin which is actually an 8-point and disc am I missing something yep so we are preparing for to provide more services in Europe so what should I say yeah what's this any more questions anyone or shall we go to the taxation part Poli okay one more question okay so you're generally for regulation you'll see us the way are we not worried about set regulation because as you said capitalization of cryptocurrency is like 200 billion the bank establishment has like trillions lobbyists I do not worried about that so our per say our review regulation is we do believe that the proper regulation appropriate regulation will help this industry to grow and then especially the cryptocurrencies of blockchain technology become more and more popular among ranking normal individuals we do need some regal payment regulatory framework to probate protect consumers to enhance the healthy development of this industry so we are not afraid of regulation but we are kind of winning to discuss and talk to you like a regulators orphan authorities and then more than happy to give them an advice and how the regulation should look like this is what we've been doing in Japan for more than three years any more questions no one okay so thank you so much guys thank you so much [Applause]

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