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The U.S. Securities and Exchange Commission (SEC) could learn from other countries when finalizing its own crypto regulation, Commissioner Hester Peirce explains. While highlighting peculiar and notable features of the U.S. system, the commissioner emphasizes cross-border considerations, detailing applicable crypto frameworks of several countries. Also read: G20 Leaders Issue Declaration on Crypto Assets – A Look at Their Commitments Importance of Cross-Border Considerations SEC Commissioner Hester Peirce explained last week her agency’s approach to regulating crypto assets and how the U.S. could draw from other countries’ regulatory frameworks in setting its own policies. Her speech was given in Singapore at the “SUSS Convergence Forum: Inclusive Blockchain, Finance, and Emerging Technologies,” hosted by Singapore University of Social Sciences (SUSS). Among the topics she discussed was cross-border crypto regulation. Peirce, known in the crypto community as Crypto Mom, suggested that “The U.S. SEC can look to our counterparts overseas for ideas in untangling some of our most difficult legal and policy questions in this area.” SEC Commissioner Hester Peirce “Because so much of the activity is taking place outside the United States, we have to think about our regulation with a sensitivity for cross-border considerations, cooperation, and what I call co-learning.” Peirce elaborated: Crypto regulation affords international regulators the opportunity to learn from one another … The resulting regulatory competition will allow us to see what works well and what does not work at all. Crypto Mom anticipates several obstacles. Since “countries all over the world are still in the early stages of determining how and whether to regulate crypto,” she foresees uncertainties regarding the various rules in those countries. The commissioner further claims that it is difficult to pin down the domicile of an enterprise in the niche due to the global nature of cryptocurrency, adding that determining the “the precise nature — currency, commodity, security, derivative — of many of the assets at issue” may also be challenging. Bermuda’s Custody Framework The first country Peirce mentioned the U.S. could learn from was Bermuda, noting that it is one of the only jurisdictions to address crypto custody in depth. Not only does the island have a regulatory regime for crypto businesses, but it has also released draft guidance for crypto custodial services. “It addresses such difficulties as how to store private keys for hot and cold storage while preserving necessary liquidity, what safeguards should be in place to prevent unauthorized access, and how to frame internal audit of transactions to ensure their integrity,” the commissioner described. “I look forward, for example, to learning more about Bermuda’s custody framework to see if we can draw from it as we think about how our custody rules apply in the crypto context,” she opined, stating: These ‘laboratories of regulation’ operated by our international counterparts have me thinking about possible paths for the U.S. to become more welcoming of crypto innovation. Singapore’s Security Token Approach Singapore has been at the forefront of much crypto-related activity, which may be attributable to the clarity it has offered to issuers in this market, Commissioner Peirce remarked, noting: Motivated in part by the approach taken by Singapore, which does not treat every token offering as a securities offering, I would support the creation of a non-exclusive safe harbor for the offer and sale of certain tokens. Peirce has previously suggested that the U.S. SEC should take a safe harbor approach to crypto assets. “A token offering made in reliance on the safe harbor would have to comply with certain requirements — for example, providing clear disclosure of the assets’ functionality, including the mechanisms for changing holders’ rights and explaining how funds are to be used — before the issuer could use the safe harbor,” she clarified. “The relief could be time-limited to guard against reliance on the safe harbor by projects without a workable plan to build operational networks.” Crypto Mom detailed: The requirements would be tailored to the needs of purchasers [of] digital assets in a way that our current regulations are not. Trading to get tokens in and out of the hands of developers and users would be permitted. Hong Kong’s Licensing and Sandbox Regime Commissioner Peirce also talked about Hong Kong’s crypto regulatory framework. Its Securities and Futures Commission (SFC) has released guidance stating that security tokens are “likely to be ‘securities,'” which Peirce said is similar to the approach the SEC has taken in the U.S. Hong Kong, however, also requires funds with crypto assets exceeding 10% of aggregate assets to be licensed by the SFC, and has issued a circular which places crypto trading platforms within a regulatory sandbox, Peirce noted. According to the Financial Stability Board’s directory of crypto asset regulators, the SFC and Hong Kong Monetary Authority supervise crypto activities in the country. The former regulates crypto assets that fall within the definition of securities, while the latter covers crypto assets in investment products and wealth management services. Thailand, Japan, Malta, Switzerland, and France In addition to the aforementioned countries, Peirce mentioned five others in her speech — Japan, Thailand, Malta, Switzerland, and France. Japan is significantly ahead of other countries when it comes to crypto regulation, having legalized cryptocurrency as a means of payment in April 2017. Crypto exchanges are required to register with the country’s Financial Services Agency. So far, 19 have been approved but over 110 operators have expressed interest in entering the space. The country recently “passed legislation to bring securities offerings of digital assets within its existing legal framework for securities offerings,” Peirce added. Another Southeast Asian country Peirce mentioned was Thailand, which has adopted a unique framework for regulating crypto assets, classifying them as either cryptocurrency or digital tokens. Crypto exchanges, brokers, dealers, and initial coin offering (ICO) portals must be licensed and comply with regulatory requirements. So far, five crypto exchanges and three ICO portals have been licensed. A number of European countries have also acted early to regulate crypto assets. The commissioner mentioned Malta, Switzerland, and France. Malta passed legislation last year that separates digital assets into unregulated virtual tokens and regulated virtual financial assets. Switzerland provided preliminary guidance for ICOs in 2017 and issued more detailed guidance last year. France recently announced a new licensing regime for ICOs and crypto service providers. Regardless of the kind of regulation the SEC decides on, Peirce believes that “Continued communication among the world’s financial regulators will be important,” reiterating: We also can continue to learn from one another to fill the gaps in our own regulation and borrow, when appropriate, from frameworks developed and tested in other places. Notable Features of US Regulatory Approach The commissioner proceeded to point out some notable features of the approach the U.S. is taking to regulate crypto assets. Emphasizing that the SEC regulates only securities, with other regulators responsible for other areas such as commodities and currencies, the commissioner commented: One of the peculiarities of the U.S. system is the sheer number of regulators. Not only do we have the state-federal allocation of responsibility that I just mentioned, but we have multiple federal financial regulators. She added, “Another notable feature of U.S. law is that the definition of what constitutes a security is a bit nebulous,” admitting that “Unlike many other countries, we do not have an exclusive list of what counts as a ‘security.'” To determine whether something is a security in the U.S., the Howey test is used. “Under Howey, something — including something that is a digital asset — is a security if it involves an investment in a common enterprise with an expectation of profits derived solely through the efforts of others,” the commissioner conveyed. SEC’s Efforts Now and Going Forward To understand and regulate crypto assets, the SEC has established a strategic hub called Finhub for fintech and innovation to coordinate the commission’s approach to digital assets. Its staff hosted a fintech forum in May and has “met with hundreds of market participants to hear what they are working on and where they need regulatory clarity,” Peirce said. Last month, the agency qualified two token offerings under Regulation A+ and issued two no-action letters. The Financial Industry Regulatory Authority (FINRA) also recently approved applications for two non-custodial digital asset broker-dealers. Moreover, the commission has issued a couple of guidance notes. One was in April which outlines a framework for determining whether a digital asset may be a security. The other, jointly issued with FINRA last month, addresses issues such as how digital asset securities can be custodied and how broker-dealers holding them can comply with other regulatory requirements. Peirce emphasized that she “would like to see more focused momentum” at the SEC towards finalizing crypto regulation so that the U.S. will not fall behind other countries in attracting crypto businesses, concluding: While I believe a single global regulatory framework would be unwise, regulators can create a healthy environment for this new market to grow by sharing information that will smooth cross-border transactions. Do you think the US should adopt some of the crypto frameworks from other countries? Let us know in the comments section below. Images courtesy of Shutterstock and the SEC. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a bitcoin wallet to securely store your coins, you can download one from us here. The post SEC Commissioner: US Could Draw Crypto Policy From These Countries appeared first on Bitcoin News. View the full article

If the prospect of greater privacy and financial sovereignty doesn’t lure the masses to crypto networks, perhaps the ability to speak freely will. Lately, a lot of people who couldn’t give a damn about peer-to-peer cryptocurrency have taken a shine to peer-to-peer networks that run on the same censorship-resistant principles. As social networks run amok, deplatforming users for the slightest provocation, decentralized alternatives start to look increasingly alluring. If Youtube, Facebook, Twitter et al continue on their current path, they may become the architects of their own downfall, accelerating the exodus to web3. Also read: Crypto Social Media is Breaking Free: How 10+ Blockchain Platforms Pay You to Post Youtube Censorship Is a Boon to Crypto-Powered Video Platforms There’s an information war raging out there on the web with everything at stake. On social media, news sites and video platforms, an almighty fight for freedom of expression is being waged. If the tech companies and media titans prevail, subjective truth will be censored, dissenters deplatformed, and human history retold by the victors. Meanwhile, the “bad guys” – normal folk who dared to voice controversial opinions or share edgy memes – will be written out of the history books altogether. so my life has just crumbled right infront of my eyes. i cant even explain how much this hurts. @TeamYouTube please can you take another look at this. my channel "Fainted" has been terminated. please i voice act funny posts pic.twitter.com/V0tKdYjOR0 — fainted (@faintedsad) August 3, 2019 When Alex Jones was deplatformed by Youtube, Twitter, Google Play, and Apple in the same weekend, with Facebook shortly following, critics warned this was only the thin end of the wedge. If it could happen to the nutty but harmless Jones, they prophesied, it could happen to anyone. It turns out they were right. One year out from the multilateral ousting of the Infowars.com founder, and the information war raging across the web has started to claim collateral damage. But just as life flourishes in the unlikeliest of places, be it the darkest ocean trenches or the highest mountain peaks, the free speech blitzkrieg has spawned resistance from a string of pro-crypto and anti-censorship companies including Gab, Verasity, and Bitchute. Censorship is a slippery slope, and once tech companies begin pandering to the demands of the (typically left-leaning) banhammer brigade, pretty soon everyone’s a target. There was once a time when social media platforms such as Twitter adhered to the free speech provisions enshrined in the U.S. constitution, which meant that anything was fair game, save doxxing or threats of physical violence. It shows how far the needle has shifted in the last five years that free speech alternative Gab is now viewed as radical for adhering to that same policy. Meanwhile, Facebook has employed 15,000 moderators who consult “a maze of PowerPoint slides spelling out what’s forbidden,” making the dominant social network a “powerful arbiter of global speech.” Youtube Censorship Is Fueling Demand for Crypto-Friendly Alternatives While Silicon Valley is going for broke on going woke, inside the cryptosphere (an amorphous conglomerate of blockchain, crypto and web3 companies with no official industry body, geography or hierarchy) an antidote is being brewed. Cryptocurrency began life as a means of P2P exchange, but increasingly adversarial conditions have forced it to evolve into a system for the digitally disenfranchised. Gab founder Andrew Torba is right when he refers to bitcoin as “free speech money.” Gab has stayed loyal to BTC through its development of the Dissenter browser and its browser plugin of the same name, that enables free comment on media websites that hate the very notion of uncensored speech. Meanwhile, Brave – the software Gab forked to create its free speech web browser – is also going strong, having just surpassed 40 million downloads. The attention-based ad model that Brave pioneered has since been developed by other crypto companies, providing additional incentives for fans to ditch the censorship-happy tech giants and switch to less partisan alternatives. Twitter is using AI to instantly detect a meme and lockout anyone who is posting it. Scary stuff. Expect this to happen throughout the entire election cycle on every platform…… but one. You can find out what the meme was only on Gab. https://t.co/mVgxMKZR8k — Gab.com (@getongab) August 3, 2019 Verasity Incentivizes Migration to Friendlier Platforms Verasity is a crypto company that’s doing for video what Brave has done for web browsing. Its attention-based solution enables video publishers to serve rewarded content to their viewers. Verasity aims to drive adoption of crypto-friendly Youtube alternatives by providing means for creators to monetize their content across multiple platforms. What does this have to do with free speech exactly? Well, as Verasity points out, convincing viewers to switch to new platforms is no mean feat. It cites Pewdiepie, who got only 0.25% of his Youtube followers to transition to blockchain-based alternative Dlive. Providing an easy means for content creators to monetize from the intrepid souls that journey with them provides a safety net, reassuring vloggers that there are viable alternatives to the Youtube ad revenue model. Nevertheless, as Junseth notes in “Why an Alternative to YouTube Isn’t an Easy Proposition”: [The tech giants] can de-platform anyone or any business by kicking them off their platform and/or by refusing to sell the website’s inventory. This means that in order for there to rise up a platform that can successfully compete with YouTube and be as profitable as YouTube, they will have to first start a programmatic ad marketplace, and then monetize their videos with it … Because … Google can reduce the price of hosting … it would be nearly impossible to host content as cheaply as they do. Verasity is not alone in its quest. A string of other competitors is rolling out the red carpet to deplatformed influencers who’ve been deemed persona non grata on the Google-owned Youtube. (That’s the same Google that’s been going to extraordinary lengths to boot Gab off its Play store, because a subset of the free speech network’s users have been known to deploy mean words.) Bitchute, while not strictly a crypto-powered video platform, uses the same P2P torrenting technology that made Bittorrent and Bitcoin so effective. And then there’s Dtube, which notes that “Because of the decentralized nature of IPFS and the STEEM blockchain,” it “is not able to censor videos, nor enforce guidelines.” Bitcoin cash proponents also have access to Cinema.cash, an anti-censorship video platform that enables content creators to get paid in BCH. Come at the King, You Best Not Miss For all its crimes, Youtube remains the dominant video network by a country mile. It generated $138 million in Q2 of this year alone – a remarkable increase of 220% YoY. Not everything that matters can be measured in dollars, though. When this week’s U.S. mass shootings sparked calls for further censorship (this time of the 8chan messageboard where one of the killers is believed to have shared their manifesto), Gab.com put it best to a Buzzfeed reporter: The future of communication and the flow of information on the internet is decentralized and open source. The days of centralized data silos like Facebook, Twitter, and Google are over. The press needs to wrap their heads around this fact and fast, because the future is already here today and it cannot be stopped. Not by you, not by us, not by governments, and not by Silicon Valley. Which platforms do you think stand a chance of capturing market share from Youtube? Let us know in the comments section below. Images courtesy of Shutterstock. Are you a developer looking to build on Bitcoin Cash? Head over to our Bitcoin Developer page where you can get Bitcoin Cash developer guides and start using the Bitbox, SLP, and Badger Wallet SDKs. The post Youtube Censorship Drives Uptake of Crypto-Powered Video Platforms appeared first on Bitcoin News. View the full article

The U.S. Internal Revenue Service (IRS) announced on July 26 that 10,000 American cryptocurrency users will receive a letter reminding them to pay taxes or amend any mistakes on past filings. At the time, IRS Commissioner Charles Rettig said U.S. taxpayers should take the warning letters “very seriously.” Sean Ryan, CTO of Node40, a platform that helps people calculate digital currency-based taxes, believes all three letters make it clear that exchanging one cryptocurrency for another is a taxable event. Also Read: 10,000 American Cryptocurrency Owners Will Receive Warning Letters From the IRS IRS Believes the Tax Agency Is Ahead of the Curve When It Comes to Cryptocurrencies When the IRS announced that it was sending 10,000 letters to American taxpayers who own or have once owned cryptocurrencies, the digital currency community seemed shocked. That said, many crypto proponents, lawyers, and tax accountants expected the action after the IRS told the public in May that updated tax guidelines concerning cryptocurrencies would be made available soon. Then, in mid-June, IRS agent Gary Alford, a man who helped take down the Silk Road marketplace, told the press that the IRS is ahead of the curve when it comes to understanding how digital currencies work and Americans who dodge capital gains won’t get away with it for long. Gary Alford is a tax sleuth who helped take down the Silk Road. “We’re usually behind the curve — history is made and then we react to it. But in this case, we are ahead of the curve — We were there on ground zero, and we were waiting for the rest of the world to catch up to what we already knew,” Alford said speaking at on a panel on June 13 at the Columbus Citizens Foundation townhouse. “We already are aware that there were cases to be made, we just didn’t know if we were at the point where we can bring it for criminal prosecution.” Alford further told the crowd that people who own bitcoin usually tell people about it and if they tell their accountant that they never heard of bitcoin then it’s the IRS’ “burden to show this individual knew.” Node40 Executive Believes the IRS Letters Clarify Exchanging One Crypto for Another Is Taxable A little more than a week later after Alford’s speech, the IRS published a press release detailing how three types of letters would be delivered to 10,000 U.S. cryptocurrency owners. The CTO of the crypto-centric tax company Node40, Sean Ryan, inspected the letters and found one possible clarification nobody is talking about. Ryan spoke with news.Bitcoin.com in June and he said that clarified tax guidance from the IRS was “long overdue.” The announcement in regards to the new IRS letters followed our interview with Ryan so we spoke to the tax expert again. Node40 CTO Sean Ryan. “There is something that I haven’t seen covered in the news yet,” Ryan explained. “As we know, the IRS hasn’t answered several outstanding questions about the nuances of paying taxes on crypto. Yes, they’ve issued the 2014 memo but we all know it lacks clarity on certain points – chief among them is the like-kind rules. Section 1031 of the IRS code before the new tax law went into effect in 2018 could have been (and was by some) interpreted to allow for an exchange of one digital currency for another, like buying ETH for/with BTC — tax-deferred. There has been much debate about this among accountants and tax attorneys with valid arguments on both sides.” But after reading Letter 6173, 6174 and 6174-A, Ryan thinks the IRS snuck a certain clarified rule within the three notices. “If you read the IRS Letters, all three contain a statement making clear that the exchange of one currency for another is taxable,” Ryan stressed. The Node40 executive added: This might be the first time the IRS has publicly stated such guidance and it came across to me as a bit sneaky. The reality is it has major consequences for those traders who were operating under the belief that any gains could be deferred under the transfer of property rule. It seems unfair to me to call someone out for not properly paying tax while at the same time making clear a point of much deliberation. Node40’s website is telling the American public that the company can help people who were served with the IRS letters concerning virtual currency transactions. Tax Litigation Firms Warn Crypto Owners: ‘Seek an Attorney Before Disclosing Anything to the Government’ Following the tax agency’s press release, an alleged former IRS agent told the Reddit community on the subreddit r/cryptocurrency that the letters are just a “broad and very error-prone fishing expeditions.” Unfortunately, there was no way the r/cryptocurrency forum visitors could confirm whether the person was really an IRS agent or someone just playing a hoax. However, quite a few forum participants believed the post was legitimate and agreed when he said the letters were predatory. “It strikes me that this [cryptocurrency] letter writing campaign, in particular, is very unethical, as they’re blindly scaring thousands of people shitless who very well may have done absolutely nothing wrong,” the supposed former tax agent wrote. IRS Letter 6173. All three letters have different meanings as Letter 6173 requests a signed response from the taxpayer in regards to alleged noncompliance. Letter 6174 simply asks the taxpayer to review their past returns and, if necessary, file an amendment. IRS Letter 6174-A notifies the taxpayer that there is potential misreporting concerning cryptocurrency transactions and the IRS may enforce criminal prosecution. It’s safe to say many Americans were alarmed by the IRS announcement and some people claim they have already received a letter and penalty quotes. Tax attorneys are already advertising online to help crypto owners if they received one of the three IRS letters. For instance, the law firm Frost & Associates LLC is now advertising to help those who are dealing with cryptocurrency tax audits and IRS Letter 6173, 6174, and 6174-A. “Cryptocurrency compliance investigations may also turn into larger, criminal tax investigations,” Frost & Associates website details. “These situations can be a massive intrusion into your personal and professional life and your accountant could be compelled to tell the IRS everything you’ve told him or her because the “accountant-client privilege” does not extend to criminal investigations or state tax proceedings.” The litigation firm further warns: If you believe you’re a target of a cryptocurrency tax investigation from the IRS, then you should immediately contact a tax attorney before disclosing anything to the government. What do you think about the IRS sending letters to more than 10,000 American taxpayers? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Node40, Sean Ryan, IRS, New York Times, Pixabay. Do you need a reliable Bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy Bitcoin with a credit card. The post Tax Expert: IRS Letters Confirm That Trading Cryptos Is a Taxable Event appeared first on Bitcoin News. View the full article

Cryptocurrencies cannot be purchased with the new Apple credit card according to the American multinational technology company’s recently published customer agreement guidelines. The Apple card’s restrictions indicate that the company’s partner, Goldman Sachs, is leery toward cryptocurrencies and other “cash equivalents” like lottery tickets and casino chips. Also Read: Banks Stopped Walmart Bank – Now the Retail Giant Hits Back With Crypto No Crypto Purchases With the Goldman Sachs Backed Apple Card The technology giant Apple (AAPL) recently announced the launch of a credit card, which allows people to spend credit with an annual percentage rate (APR) between 13-24%. The California-based firm revealed the card will be released at some point this month, according to the firm’s third fiscal quarter earnings call. Some of the biggest selling points for the new Apple Mastercard include: virtual use, no annual fees, and no fees for transactions and penalties. Another interesting aspect is that the card will not feature the traditional Mastercard 16-digit number or CVV code. “Thousands of Apple employees are using the Apple Card every day in a beta test and we will begin to roll out the Apple Card in August,” Apple CEO Tim Cook revealed during the earnings call on July 30. Following Cook’s statements, the Apple card’s terms of service (ToS) were published via the Goldman Sachs’ website this week. Two of the biggest issues that stand out for people who have read the customer agreement include the restrictions against jailbreaking an iPhone and restricting “cash equivalents” like cryptocurrencies. This is first addressed in the user agreement’s first section called “Important Definitions,” which essentially defines the terms used within the agreement. “‘Cash Advance and Cash Equivalents’ means any cash advance and other cash-like transactions, including purchases of cash equivalents such as travelers checks, foreign currency, or cryptocurrency; money orders; peer to peer transfers, wire transfers or similar cash-like transactions; lottery tickets, casino gaming chips (whether physical or digital), or race track wagers or similar betting transactions,” explains the Apple card ToS. The Apple card comes in both virtual and physical form with no 16-digit number or CVV code. Being against “cash equivalents” is not all that different than most traditional credit ToS agreements, and banning things like lottery purchases is standard procedure for credit cards. Some skeptics believe it’s not that Apple wants to police what you can purchase, but that the blame likely falls on Goldman Sachs. Crypto purchases using credit cards already experienced pushback from banks and regulators after it was revealed that lots of people were using charge cards to purchase bitcoin and other digital assets during the last bull run. By the end of 2017 it was revealed that Capital One, Chase, Bank of America, Lloyds Banking Group, Discover, Virgin Money, and TD Bank Canada had all banned digital currency purchases. According to Capital One, the bank sees digital assets may lead to high risks of fraud and severe losses. “Capital One continues to closely monitor developments in cryptocurrency markets and exchanges,” the bank said back in 2018. “And [Capital One] will regularly evaluate the decision as cryptocurrency markets evolve,” the bank explained. Beside restricting cryptocurrency purchases and cash equivalents, Apple card users cannot modify or “jailbreak” their iPhones. Apple’s Long History of Cryptocurrency Restrictions Despite Goldman Sachs involvement with Apple this time, the corporation had already had a long history with certain cryptocurrency restrictions. For instance, in February 2014, Apple had removed all the bitcoin wallets from the App Store including Blockchain.com’s Wallet, Coinbase, and Coinjar. After the wallet ban, Blockchain.com wrote a blog post which denounced Apple’s choice to remove the wallet application. “These actions by Apple once again demonstrate the anti­-competitive and capricious nature of the App Store policies that are clearly focused on preserving Apple’s monopoly on payments rather than based on any consideration of the needs and desires of their users,” Blockchain.com’s scathing critique stated. “[Blockchain wallet] had no customer complaints and a broad user base. The only thing that has changed is that bitcoin has become competitive to Apple’s own payment system. By removing the Blockchain app, the only bitcoin wallet application on the App Store, Apple has eliminated competition using their monopolistic position in the market in a heavy-handed manner.” Apple banned bitcoin-related apps in the App Store in 2014 but let them back in later. In February 2018, Apple finally defined its app rules for digital currency platforms which restrict ICO and mining apps. Did you know the noncustodial Bitcoin.com Wallet is one of the most popular wallet apps on the App Store? Download it here. Android users can download our BCH and BTC wallet here. A few months later, after the Bitcoin community got riled up and some enthusiasts even filmed Youtube videos of themselves blowing up iPhones in protest, Apple silently let crypto wallet apps back into the App Store. However, in September of 2016, Apple started banning certain types of digital currency wallets that supported coins like dash and ethereum. The creator of the Jaxx multi-cryptocurrency wallet and CEO, Anthony Di Iorio, received word from Apple at the time that his startup was required to remove support for dash. Apple again had a change of heart later, and quietly allowed wallet developers to add a variety of digital assets. On June 8, 2018, Apple finally defined its cryptocurrency rules for the App Store and gave people better clarity on what kind of crypto apps would be allowed. “Wallet apps may facilitate virtual currency storage, provided they are offered by developers enrolled as an organization,” explained Apple’s revised App Store rules. “Exchange apps may facilitate transactions or transmissions of cryptocurrency on an approved exchange, provided they are offered by the exchange itself.” Apple did restrict initial coin offering applications, and mobile platforms that provided crypto mining applications using an iPhone’s chipset were strictly prohibited. Any ICO application would have to be established by: “banks, securities firms, futures commission merchants (“FCM”), or other approved financial institutions.” Apple Can Decline Transactions for Any Reason and Jailbreaking a Smartphone Could Cause Service Disruptions As far as the Apple card is concerned, if the company or partner bank (Goldman Sachs) finds out that an individual has attempted to purchase digital currencies, the card could be shut off indefinitely. Apple may decline transactions “for any reason” and the company will advise the digital currency sales associates why the transaction was declined at the time of rejection. In addition to the cryptocurrency purchasing restrictions, the Apple user agreement highlights that if a user decides to modify, root or “jailbreak” their mobile device, Apple will disconnect the credit card from the device as it constitutes a violation of the customer agreement. What do you think about Apple and Goldman Sachs restricting cryptocurrency purchases on the new Apple card? Let us know what you think about this subject in the comments section below. Image Credits: Shutterstock, Pixabay, Apple card, Apple Inc., Goldman Sachs & Apple card ToS. You can now purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH directly from our trusted seller and, if you need a Bitcoin wallet to securely store it, you can download one from us here. The post Goldman-Backed Apple Card Restricts Cryptocurrency Purchases appeared first on Bitcoin News. View the full article

Social media has become so embedded in most people’s everyday lives that it’s hard to imagine life — or even a span of a few hours — without it. While the social media revolution is huge, there’s another revolution within that revolution, driven by users into cryptocurrency, privacy, and immutability: incentivized, blockchain-based social media. Also Read: US Regulator Plans to Outsource Running Cryptocurrency Nodes Steemit as Pioneer Coming on scene as a pioneer in July 2016, Ned Scott and blockchain developer Dan Larimer’s Steemit boasted to be a first of its kind blockchain-based social media platform, allowing users to earn rewards via Steem for posting, curating, and commenting. Many users compared the site’s style to a kind of “crypto Reddit.” Larimer, the creator of the Bitshares DEX, DPoS (Delegated Proof of Stake Algorithm), and the current CTO of Block.one (EOS developer), built the site with co-founder Scott on the Steem blockchain, a Graphene-based, DPoS chain. While the site enjoyed initial, highly sensational success — with one well-known and controversial libertarian podcaster raking in $15,000 for a short “introduce yourself” post — user interest has since flagged significantly. A series of seismic management and corporate structuring shifts (including Larimer leaving the project in 2017), coupled with the crypto winter of last year, saw many loyal users searching out greener pastures. Source: https://steemit.com/steemit/@michel.speiser/steem-stats One thing that Steemit did help establish, however, was the potential of blockchain technology to provide relative censorship resistance and successfully reward users for engagement. Neither the platform nor other users could deplatform anyone by reporting or flagging a post (a huge problem currently for many giants in the field like Twitter, Facebook, and Youtube). And when the first payouts came in the summer of 2016, a massive wave of excitement ensued. However, troubles with spambots and abuse of voting power would prove to be significant challenges down the road. Steemit ‘Spin-Offs’ Seeking to improve on the shortcomings of the Steemit project, newly-launched (April 2019) Narrative.org has become a home to crypto bloggers interested in a less “wild west” and more centralized approach. Narrative is supposedly more resistant to the abuses which would come to plague Steemit. Multiple account creation is difficult due to KYC policy, and communities are organized around niches (tags) owned by users who can reap monetary benefits for ownership, and elect moderators (a feature not yet implemented on the beta version site) to keep spam from overwhelming the network. A central tribunal exercises executive decision-making power and moderates mostly democratic community activity. Screenshot from the Narrative platform. Another notable “spin-off” of Steemit (in this case, admittedly, directly inspired via a pizza purchased with Steem rewards) is Japan’s first blockchain-based social media site, ALIS. Similar to Narrative, ALIS focuses on niche interest groups (like crypto enthusiasts and Japanese manga readers). Though current financial regulations present hurdles for the group, CEO Masahiro Yasu and company maintain their vision of helping users “find trustworthy articles and people quickly” in lieu of depending only on spammy Google search results and unreliable mainstream media. Quality content and curation are rewarded with the ALIS token. BCH Joins the Party Emerging on April 15, 2018, on-chain social media site memo.cash was launched on the BCH network. With features like native tipping and SLP token creation, Memo is a unique and multi-faceted way to interact with the Bitcoin Cash blockchain. The platform was notably mentioned in July by Ethereum co-founder Vitalik Buterin, when he suggested that the Bitcoin Cash network might provide a temporary scalable data layer for Ethereum: The BCH community seems to be friendly to people using their chain for whatever they want as long as they pay the tx fees (eg. https://memo.cash) Though not as visually ornate as some blockchain-based platforms, users are drawn to the functionality and innovative aspects of the platform. The ability to authentically timestamp important information and make it virtually immutable, for example, is an important feature to many. This particular application has been suggested to Twitter CEO Jack Dorsey as a means by which to allow verifiable editing of Tweets. Honest.cash Another platform built using the Bitcoin Cash blockchain is Honest, which was launched in November, 2018. In keeping with the theme of free speech, the site affirms that: The internet should reward quality thinking and be a place for an uncensored discussion. Direct voting via a user wallet allows bloggers to receive BCH for their posts when other users upvote, or, like Steemit and Narrative, when successful curation occurs. While the site is still growing and completing its V2 migration, community members and the honest.cash core team and creator, Adrian Barwicki, are active in development and support via the Honest Cash Telegram chat. Comparative List of Popular Crypto Social Media Decentralized, incentivized blockchain and crypto-based social media offer alternatives to popular platforms like Twitter, Reddit, Youtube, Instagram, Facebook, Medium, Linkedin, and Patreon. Here is a list of some of the most popular sites: Bitchute: P2P, web torrent video sharing platform. Monetization available via Bitbacker, Coinpayments and others. Main user interests: politics/activism. Alexa ranking: 4,024. Similar to: Youtube. Steemit: Steem blockchain-based social media platform. Earn Steem and Steem Dollars (USD soft-pegged asset) to post, comment, and curate. Main user interests: advice, finance/economics. Alexa ranking: 5,255. Similar to: Reddit. Dlive: Lino blockchain-based video sharing platform. Formerly built on the Steem blockchain. Earn Lino points to post and engage. New home to Pewdiepie. Main user interests: gaming (livestreaming), animation, analytics. Alexa ranking: 5,748. Similar to: Youtube. Minds: Open source social media platform. Earn Minds ERC20 tokens for contributions. Main user interests: politics/activism. Alexa ranking: 9,611. Similar to: Twitter/Facebook. Dtube: IPFS-based, Steem blockchain dapp. Video sharing platform. Earn Steem to post and curate. Main user interests: news, visual arts. Alexa ranking: 24,832. Similar to: Youtube. Earn: Coinbase’s targeted microtask earning platform/app. Earn crypto by replying to emails or completing small tasks. Main user interests: economics, technology. Alexa ranking: 59,172. Similar to: n/a. Narrative: User-governed social media platform for bloggers. Earn NRVE tokens to post, comment, curate, moderate, and own niches. Main user interests: n/a. Alexa ranking: 129,990. Similar to: Medium. Scorum: Sports and betting-focused blockchain-based platform. Earn SCR coins for content creation and curation. Main user interests: sports, gambling/betting. Alexa ranking: 138,365. Similar to: n/a. Voice: Block.one EOS-network-based social media platform. Earn Voice tokens for contribution. Identity-focused user validation. Main user interests: n/a. Alexa ranking: 204,857. Similar to: n/a. Memo: BCH blockchain-based social media platform. Earn BCH via posting. Data is stored direct to blockchain using OP_RETURN. Main user interests: Bitcoin Cash, blogging. Alexa ranking: 369,947. Similar to: Twitter. Sapien: Democratized, Ethereum-based news platform. SPN tokens serve as stake in the network facilitating interaction. The site aims to combat unreliable or “fake” news. Main user interests: news. Alexa ranking: 430,729. Similar to: n/a. Indorse: Ethereum-based coding evaluation and assessment recruiting platform. Earn IND tokens for activity on the network. Main user interests: coding, recruiting. Alexa ranking: 523,854. Similar to: Linkedin. Bitbacker: Crypto-based fan-funding platform. Garner support for projects and posts from your fanbase. Main user interests: n/a. Alexa ranking: 1,159,103. Similar to: Patreon. Obsidian: PoS blockchain with an encrypted mobile messaging app/platform. Earn ODN tokens for securing the network. Main user interests: n/a. Alexa ranking: 1,442,289. Similar to: n/a. Socialx: Photo and video sharing blockchain-based platform. Earn SOCX coins for contribution and licensing. Main user interests: n/a. Alexa ranking: 2,030,873. Similar to: Instagram. Honest: BCH blockchain-based blogging platform. Earn BCH for content creation and curation. Main user interests: n/a. Alexa ranking: n/a. Similar to: Medium. Local.bitcoin.com: P2P, encrypted trading platform. Offers non-KYC, P2P trading of BCH. Main user interests: cryptocurrency. Alexa ranking: n/a. Similar to: Localbitcoins.com. (Information based in part on Alexa rankings and data from August 3 and 4, 2019) It’s Anybody’s Game, But the Game Is Here to Stay The aforementioned Larimer of Steemit fame, along with Block.one CEO Brendan Blumer, has now jumped into the social game once again with his new platform Voice, whose launch was announced June 1. During a recent Telegram Q&A, however, when potential users voiced privacy concerns about strict KYC policies of the platform, Larimer didn’t seem overly receptive: It should prove interesting to see how the new site develops and fares against the others with drastically different philosophies and mission statements. However different these platforms may be, it’s an exciting time for social media enthusiasts, crypto lovers, bloggers, developers, journalists and entrepreneurs alike, with the proliferation of this new generation of social media providing unique opportunities in cryptocurrency and security for users. What are your thoughts on blockchain-based social media? Did we miss one of your favorites? Let us know in the comments section below. Image credits: Shutterstock, Fair use. Did you know you can also buy Bitcoin Cash online with us? Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post Crypto Social Media is Breaking Free: How 10+ Blockchain Platforms Pay You to Post appeared first on Bitcoin News. View the full article

More than half the year is behind us and the cryptocurrency ecosystem continues to move forward, showing relentless growth over the last six months. 2019 has also seen a new theme arise as speculators believe the cryptocurrency ecosystem is experiencing an influx of institutional interest and regulatory crackdowns. A variety of cryptocurrency research reports analyzing the first two quarters of the year show the space has seen a lot of growth, despite regulatory headwinds. Also Read: Banks Stopped Walmart Bank – Now the Retail Giant Hits Back With Crypto The Cryptoconomy 2019: Institutionalization, Facebook and Exchange Tokens Coinshares and cryptocurrency corporation Circle have recently published very detailed research reports concerning the digital asset space over the last six months. Over the last few weeks, the market capitalization of all cryptocurrencies has ranged between $250-300 billion. The U.K.-based firm Coinshares’ H1 report says that the last six months should be considered a net positive for the young industry. “The continuing professionalisation of the protocol services and corresponding technologies has been impressive and most assets have reacted by recovering substantially from last year’s brutal bear market,” explains Coinshares’ H1 study. It notes that there’s been “no shortage of speculation” when it comes to people guessing what’s driving the rally. Coinshares’ study shows data on H2’s top five BTC markets by volume, volume by fiat pair, and volumes by geography. The research also shows that retail interest in BTC is “relatively tepid compared to 2017.” This makes Coinshares’ believe the H1 recovery was “largely driven by the long-awaited entrance of institutional money.” The firm says that the company’s sales division has “anecdotal evidence” that supports the institutionalization theory. Coinshares mentions financial incumbents like Fidelity and the Intercontinental Exchange (Bakkt) as institutional examples. Moreover, in terms of legitimizing the industry, the company’s report also highlights Facebook’s Libra coin attempt. The report’s authors opine that even though the digital currency may be centralized, it could be beneficial. “While Libra is centralised, permissioned, trust-based, not censorship-resistant, not scarce, and arguably not even a cryptocurrency at all (though this term is poorly defined),” Coinshares’ H1 report notes. “It does offer potential benefits to the world’s unbanked that currently don’t have access to services we take for granted in the West, such as online shopping.” congrats to @Bakkt on the beta launch of their physically settled bitcoin futures contract! the market for bitcoin is changing, and quickly. futures, derivatives, and synthetics will fundamentally change the nature of the bitcoin market. see below what happened to gold 👇 pic.twitter.com/PI8KKadjFY — Meltem Demirors (@Melt_Dem) July 22, 2019 Record Open Interest and Volumes in CME Bitcoin Derivatives and Defining Crypto Regulations Circle’s 80-page report is far more in-depth, and also notices the growth of institutionalization within the crypto space. The company’s research says that some notable signs of institutional interest stem from data like inflows into Grayscale’s products and CME’s futures open interest and trade volumes reaching all-time highs. To Circle’s researchers covering 2019’s Q2, the announcement from Facebook was a watershed moment for some people although others have been skeptical. As far as stablecoins are concerned, the company said it witnessed its own USDC regulated stablecoin market cap rise a great deal. “Grayscale recently provided a second-quarter update, showcasing continued strength since market lows at the end of 2018,” Circle’s report notes when researching the distinguishing signs of institutionalization. “Assets under management were up 125% quarter over quarter (q/q), driven by an increase in underlying prices, among other factors. The portion of inflows from institutional investors has been experiencing step function growth, rising from 59% in 3Q18 to 84% in 2Q19 — Grayscale notes this figure was dominated by hedge funds.” As far as CME Bitcoin futures interest, Circle notes that Gareth MacLeod, partner at Gryphon Labs, suggested that the recent surge in CME’s crypto futures volumes is likely due to “traditional finance taking a greater interest in bitcoin.” Circle’s research also claims that defining regulatory developments may be strengthening institutionalization within the cryptoconomy. The report shows established regulatory changes like the SEC’s framework for investment contracts (April 3), China’s proposed ban on crypto mining (April 9), Ohio representative Warren Davidson reintroducing the “Token Taxonomy Act” (April 9), NY’s Attorney General announced investigating Ifinex (April 26), FinCEN issuing guidance on BSAs and digital currencies (May 9), the SEC postponing Vaneck/Solidx ETF (May 20), IRS announcing new tax guidelines for cryptos (May 16), and the Egyptian central bank proposing digital currency regulatory action (May 29). Other regulation topics include the SEC’s action against the Kik initial coin offering (ICO), India’s recent crypto discussions, the G7 taskforce, and the recent A+ token offerings granted approval by the SEC in mid-July. Crypto Funding Gathers New Tailwinds, Noncustodial Trade Volumes Increase, and Lightning and Maker Network Usage Declines After the rise and fall of ICOs, the new trend Circle sees is the “rise of exchange tokens.” Exchange tokens are sold similarly to ICOs but are exclusively used on the trading platform for various benefits like discounted trading fees, rewards, governance systems, and token burns. The researcher highlights 2019’s prominent exchange tokens including Binance (BNB), Huobi (HT), Coinflex (FLEX), and the LEO token launched by Bitfinex. Even though these tokens are slightly different to the prior ICO model, Circle researchers say that the issuers may face regulatory hurdles. “A major challenge that exchange tokens face is around how they should be classified by regulators — as utility tokens or security tokens,” the authors of Circle’s Q2 study remark. 2019 saw a bunch of seed funding rounds and venture investments into crypto-based companies according to Circle’s study. This includes startups like Sparkswap ($3.5 million), Cambridge Blockchain ($3.5 million), Flexa ($14.1 million), Chainalysis ($6 million), and Celo ($25 million). The 80-page report also underlines subjects like the number of funds involved in cryptocurrency staking. According to Circle’s study, there’s $6.5 billion worth of digital assets locked up in (proof-of-stake) staking networks. Circle notes that the increase of staking this year is driven partly by projects like Cosmos and V Systems. Additionally, Circle measured the activity of decentralized applications (dapps) and found there were +43 added per month in 2019 on Ethereum and +16 on the EOS network. Circle’s research also shows that there’s been increasing trade volumes on noncustodial exchanges as this metric has increased by 32% q/q. During the first week of June, Bitcoin.com recently launched a peer-to-peer, noncustodial BCH marketplace called Local.Bitcoin.com, adding another option to the slew of accessible noncustodial platforms introduced in 2019. Additionally, the report explains that there’s been an activity decline on both the Lightning Network on BTC and the declining dominance of ETH locked into the Maker contract. Overall, both reports show there’s been a lot of cryptocurrency activities and positive outlooks throughout H1 and a good score of steady growth increases quarter over quarter. Coinshare’s report underscores that “nothing is certain in this space and things often feel like they move at a breakneck pace.” However, the company looks forward to seeing what the next half of the year brings. Circle’s research also shows a net positive for 2019’s Q2 and it will be interesting to see if the cryptoconomy’s action and the underlying network development behind these projects continue to rise in H2. What do you think about the overall activities and market action of the cryptoconomy in H1 2019 described by Coinshares and Circle’s reports? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Circle Research, Twitter, Coinshares, Kaiko, Coingecko, and Pixabay. Are you looking for a secure way to buy Bitcoin online? Start by downloading your free Bitcoin wallet from us and then head over to our Purchase Bitcoin page where you can easily buy BTC and BCH. The post Research Reports Show Positive Crypto Industry Growth in H1 2019 appeared first on Bitcoin News. View the full article

Germany, the locomotive of Europe’s huge economy, is entering a difficult period, various indicators suggest. And when the Federal Republic sneezes, the Old Continent usually catches a cold. This time, Germany may infect the rest of the world as well. Regulators in the country are busy drafting prohibitions, and now also seem to target cryptocurrencies. A German economic and financial crisis would be a seismic event of global proportions, affecting all markets. The main question now seems to be when it will happen, not if. Also read: Liquidity Difficulties in China: Second Bank Bail-Out Now Reality Biggest Drop In a Decade – German Industry Is Hurting The industrial powerhouse of the Eurozone and the greater European Union is now seeing a significant decline in production – by 2.7% year-on-year in January and 1.9% in April compared to the previous month. Then in May, factory orders declined 2.2% from a month ago and registered an 8.6% annual drop, the biggest in a decade. In the first half of 2019, even beer sales were down 2.7%, according to Destatis, the Federal Statistical Office. International trade wars and geopolitical uncertainty in the region and beyond are negatively affecting the German economy, which relies heavily on exports. They form almost half of the country’s annual economic output. Germany is Europe’s leading exporter of goods and it ranks third among the largest exporters in the world, after China and the United States. Several factors have been hurting German exports which registered an annual decrease of 0.5% in April. Demand from China, which is a major market for German products, has been weakening due to slowing growth. U.S. tariffs on steel and aluminum are also a major concern and the Trump administration is now considering whether to impose tariffs on European cars. Addressing the Bundestag last month, Chancellor Angela Merkel warned of a new global financial crisis as a potential result from a trade war with the U.S. She stressed that tariffs on cars would be much more serious than those on steel. The steepest slide in orders has been in the auto industry. Then there’s the upcoming Brexit divorce Germany has to deal with as well. Short Working Weeks Are Back Against this backdrop, a growing number of German companies are reintroducing short-time work schemes, the kind that were implemented during the last global financial crisis to mitigate its impact on industrial enterprises and their workforce. According to a survey conducted by the Munich-based Ifo Institute for Economic Research, 8.5% of the companies in Germany’s manufacturing sector expect to introduce short-time work programs over the next three months. This is the highest percentage since 2013, Deutsche Welle reported, as last year only 2.6% of industrial entities were considering shorter working weeks for their employees. Germany still has one of the lowest unemployment rates among developed nations. In 2018, only 3.4% of its citizens between 15 and 74 years old had no job. Unemployment in the Euro area remains much higher at 7.9% at the end of December. Shorter working hours are definitely helping keep the indicator as low as possible. The negative trends forced the nation’s central bank to revise its economic forecast, taking into account the outlook for the global commerce hit hard by the trade disputes between major players on the world scene. Bundesbank now thinks the German economy will grow only around 0.6% this year. The number represents a significant retreat from its previous prediction of 1.6% which was announced in December. Financial Meltdown Brewing in Europe The EU as a whole and the Eurozone in particular remain very diverse clubs of nations in terms of economic status. Some countries, particularly from the Southern flank, continue to register double-digit unemployment rates, 18% in Greece for example. While Spain’s economy is doing relatively well, Italy is practically in recession. Rome never managed to overcome its slow growth and a decade after the 2008 crash the Italian economy remains smaller than before the global financial crisis. In May, a senior adviser to the German government shared with the BBC his fears that another European financial crisis could be brewing. Dr. Lars Feld, a member of the German Council of Economic Experts, singled out Italy. He noted that the country, which has the third largest economy in the single currency area, is struggling to stay out of recession as it has to deal with both a banking crisis that can affect the euro and a very high government debt, which reached a record high 132.2% of GDP in 2018. A recession in Italy, which is also the world’s eighth largest economy by nominal GDP, sounds bad enough, but a slowdown in Germany would be even more damaging. A full-blown recession in the Federal Republic could definitely trigger a global crisis. Last year, Dr. Feld was one of the first to warn that the largest European economy is slowing down. It actually shrank in the second quarter of this year. But while the government adviser is worried, the executive power in Berlin seems to be in a state of denial. ‘We Are Not in Crisis’ Finance Minister Insists In a recent interview with Bloomberg, German Finance Minister Olaf Scholz downplayed warnings about the negative outlook for the German economy and revealed that the federal government has no plans to stimulate economic growth. He believes that resolving man-made crises, such as the ongoing trade wars and Brexit, would increase growth rates in 2020, the year many now point to as the start of the next big crash. Insisting that more government spending now would rather lead to inflation than growth, Scholz stated: We are not in a situation that makes it necessary or wise to act as if we were in a crisis, we are not. Germany’s finance minister made these comments right after the European Central Bank indicated its intentions to increase its monetary support for the Eurozone economy in the coming months. Speaking to media in Frankfurt, ECB President Mario Draghi stressed that manufacturing in Germany and elsewhere in Europe may need increased government spending. In June, the European Central Bank indicated its ultra-low interest rates are likely to remain in place until at least mid-2020, six months longer than the previously stated goal. ECB’s management is also preparing for further cuts that will take interest rates into negative territory. In the Eurozone, they have been going down for seven years and have been at 0% since 2016. More quantitative easing is also on the horizon, which means printing more money. Such policies would have a hard time winning support from the German coalition government lead by Angela Merkel. Olaf Scholz, who is also her deputy, believes the tax cuts that have been made so far and the infrastructure spending are working fine and additional stimulus would not be a wise idea. In essence, Frankfurt wants to bolster economic growth with QE and negative interest rates, while Berlin sees only rising prices as a result of these measures. Too Big to Fail If there’s one thing Germany fears, it’s inflation. Being a leading exporter of high value added, quality products, inflation of the euro would decrease its revenues. And that’s one of the biggest contradictions of the Eurozone as countries like Italy actually need higher inflation so that their exports remain at least price competitive in relation to the German exports. Berlin has gotten itself, and the rest of Europe, into an almost hopeless situation. The Eurozone is tuned in a way that benefits its largest economy. That, however, leads to the concentration of money in Germany whose banks have been lending it back to the weaker partners in the Eurozone and the EU to sustain them and their markets. Sooner or later, the poor borrowers won’t be able to take any more debt. It’s already happened with Greece, for example. Germany has become a lender, supplier and consumer that’s too big to fail. A German crisis would surely drag the rest of the Eurozone and hurt the global economy. So now Europe is basically financing Germany through low and subzero interest rates. Things are nearing a point where normal economic logic isn’t part of the equation anymore. Investors are literary paying more and more to lend money to Germany, as Welt business editor Holger Zschaepitz remarked in a tweet this week. Berlin recently sold €2.345 billion of 10-year debt at a record low yield of -0.41%. Totally absurd: Investors are paying #Germany more and more to lend the country money. Berlin sold €2.345bn of 10y debt at fresh record low yield of -0.41% vs -0.26% at Jul auction. Bid-to-cover rose to 2 from 1.2 at July 10 auction. pic.twitter.com/PHF2tiU5f0 — Holger Zschaepitz (@Schuldensuehner) July 31, 2019 Whatever the German finance minister says and does, there’s a well-grounded feeling that the next big crisis is looming. The troubles of Deutsche Bank, Germany’s largest financial institution and top banking services provider, are proof that something is wrong with the traditional financial system. The fact that central banks bought a record $15.7 billion of gold in the first half of the year and German investors piled into gold-backed exchange traded funds, as Financial Times reported, is a strong indication of efforts to diversify away from fiat currencies. “In Europe we have a dysfunctional monetary union,” German finance strategy consultant Marc Friedrich told news.Bitcoin.com. “The South suffers with the euro and will never get better within the euro,” the economist emphasized. Friedrich thinks the recession is already coming and believes that in its aftermath a new monetary system will be born, a digital one, in which societies will need decentralized currencies. Unfortunately, German regulators are making it harder for crypto businesses to operate freely in the Bundesrepublik. Companies from the industry, such as exchanges, payment providers and custodians, will have to apply for a special license from Bafin, the Federal Financial Supervisory Authority. They have to do so by the end of the year with the introduction of new AML rules based on EU’s Fifth Anti-Money Laundering Directive which must be transposed into German law by January 2020. According to information shared on crypto forums, the new regulations are already affecting platforms dealing with cryptocurrencies. For example, Germany is no longer on the list of countries supported by Bitpay, a leading payment processor that allows many businesses outside the industry to accept coins through conversion to fiat. Of course, direct crypto payments remain a viable alternative. You can process bitcoin cash payments using the Bitcoin Cash Register app for iOS and Android. The simple Point of Sale software developed by Bitcoin.com allows merchants to accept BCH at any retail location. Payments are easy, safe and no account or registration is needed to install and use it. Do you expect the next financial and economic crisis to begin in Germany? Share your thoughts on the subject in the comments section below. Images courtesy of Shutterstock, Destatis. Do you need a reliable bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy bitcoin with a credit card. The post More Signs the Next Big Financial Crisis Begins in Germany appeared first on Bitcoin News. View the full article

In a string of recent Tweets, 2020 Libertarian presidential candidate and fugitive from the law John McAfee has been talking about slavery. Urging people to “wake up” and assuring them that neither compliance with the status quo, nor stacks of riches, can set them free. Indeed, when the current state of the world is examined closely under an economic lens, there is no other rational conclusion save that humanity currently inhabits a gigantic, fiat money plantation, and that the slaveholders are violent and irrevocably unreasonable. Also Read: Bitcoin Cash 2-Year Anniversary: Celebrating Protocol Development and Achievements You Are a Slave Yes, you are a slave. No, that’s not hyperbole. Before launching into this, though, it’s important to define terms. A generally agreeable definition runs like this one, put forth by UNESCO: As slavery seems to take new forms, it is still, nevertheless, identified by an element of ownership or control over another’s life, coercion and the restriction of movement and by the fact that someone is not free to leave or to change an employer. In essence, to be a slave is to have no autonomy or freedom concerning one’s body with regard to other human beings. That’s just to say, if you’re not a slave, you can do what you want within the bounds of property, and nobody has a right to force you to be somewhere, or to work for them. The historic plantation slavery of the southern United States is well-known for its visible, horrific evils wrought on innocent human beings treated as property. Blatant examples of slavery also continue in many places today, in the form of direct “ownership,” human trafficking, sex slavery, and suchlike. But there’s still a form that is so blatant as to be ubiquitous, yet which most do not even protest, let alone recognize: fiat slavery. In a recent live video uploaded to his Twitter account, maverick anti-politician John McAfee laments: “You think you’re not slaves but you are. The nine-to-five existence of your current lives is structured by the American industrial corporate complex, complicit with our government. You need to free yourselves from this.” He goes on to state: “This is not what life is. Life is a great mystery. A glorious, unbelievably mysterious, beautiful existence if you are free from those who control you.” An actual abolitionist from the plantation slavery era in the United States, political philosopher, essayist, and individualist anarchist Lysander Spooner eloquently elaborated: While some balk at the idea of taxation and fiat money being a form of slavery, there really is no other rational conclusion. According to former IRS agent Sherry Peel Jackson in one of her many compelling speeches, it’s true, and knowledge of economics bears it out: And let me tell you, that as a black woman I am keenly aware of the history of slavery. But do you understand that we are all slaves to this system? Do you understand that the media and Hollywood play a part keeping the American people so fixated [on movies and TV]…that we don’t take time to read the Creature from Jekyll Island, study the Internal Revenue Code and learn the Constitution? What Makes You A Slave? In civilized market transactions, the buyer chooses the products or services they’d like to purchase, and the quantity, freely. Common sense. Nobody would frequent a pizza shop, for example, where the workers and owner forced people to buy pizzas under threat of violence. This would not only be absurd – it would be completely immoral. With government and its fiat (lit. “by decree”) money, though, you don’t have a choice. The services and products—and their quantities—are chosen for you in advance, and you must buy, and work to pay via taxes, or go to jail. If you don’t like the quality of police protection offered to your community, that’s too bad. You must pay for it. If you don’t like any of the politicians running for office to rule your life, that’s too bad. You still have to work and pay for the winner’s policies to be implemented. If you don’t pay, you’ll go to jail. If you try to run away, you’ll almost always be caught. Maybe killed. If you wish to leave the plantation, there’s a fee for that, and your request may be denied. Just to be 100%, crystal clear: your request to move your own body geographically elsewhere may be denied. So, in the end, who owns you? It certainly isn’t you, by the looks of things. Free Range Tax Cattle Before 1861, there was no such thing as an “income tax” in America. In fact, the IRS was formed around the same time to collect the nation’s very first income taxes as a “temporary” measure to pay for the Civil War. Of course, “temporary” would turn into perpetual, and the many-tentacled monster of centralized state banking would grow in grotesque, rapid fashion, leading to the current situation. In 1895, the U.S. Supreme Court struck down the income tax as unconstitutional, but it would be later revived as a permanent fixture in 1913, the same year the Federal Reserve was created. Currency competition was also historically permitted more or less, prior to this time. Until the National Bank Act of 1863, communities, churches, railroads, and virtually anyone could issue their own paper money backed by whatever they saw fit. These days, unless one’s currency is approved by the government, forget about it. This is why the whole issue of Bitcoin and currencies like Facebook’s proposed Libra are causing so much commotion. Never mind that the Fed has just slashed interest rates once again, on July 31. This for the first time since the financial crisis of 2008. The money forced on everyone continues to be systematically devalued and debased. No matter. Use it, or else. That’s the situation. Forced to work to pay for things for someone else. No safe alternative. Cannot leave. If you leave, you’ll have to pay for your freedom. If you try to run away, you’ll be caged, killed, or fined and returned to the plantation. This is, by definition, slavery. Bitcoin Breaks the Mold At the beginning of July the Dementia Society of America announced it would begin accepting Bitcoin and crypto donations: Why crypto donations? For donors in the United States, the IRS has classified Bitcoin as property for tax purposes. When you donate Bitcoin…you don’t pay capital gains tax and can write off the donation. You can change lives, and honor the memory and legacy of a loved one, in a convenient and tax efficient way. Even if these tax laws were changed, bitcoin would still have the ability to travel thousands of miles in an instant, for practically zero fees, which means its utility cannot be determined by a state or central bank. From Venezuelan aid to clothes in Canada, crypto’s ability to sustain secure, reliable, and fraud-resistant charity is remarkable. What really frightens the slaveholder paradigm is the fact that when individual users—and not central banks or governments—hold the private keys to their money, the only way to control it is to attempt a desperate application of force. This has two effects: Proving that the money is indeed secure and valuable. Showing the state for what it is: a violent, inhumane, controlling force. The Keys Must Be Used or the Lock Won’t Open Bitcoin and crypto are tools that can help trapped humans enjoy a better quality of life and begin to break free from the slave cycle McAfee speaks of. They’ve already begun to do so, giving normal, everyday individuals who couldn’t compete in the status quo of fiat power, an unexpected chance to innovate and be judged by their own merits and the market, instead of an arbitrary set of illogical, violent rules. Perhaps that is why governments are supportive of blockchain in general, but stand against private currencies. That said, in and of themselves, these are not enough. As McAfee details in his latest video, even if one has all the money (or bitcoin) in the world, without an understanding of the value of freedom, no one can break free. What do you think about McAfee’s statements? Let us know in the comments section below. OP-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article. Images courtesy of Shutterstock, Twitter, fair use. You can now purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH directly from our trusted seller and, if you need a Bitcoin wallet to securely store it, you can download one from us here. The post The Modern Era of Free Range Slaves: How Bitcoin Breaks the Mold appeared first on Bitcoin News. View the full article

On August 1, it was discovered that the giant retail corporation Walmart has patented plans for a stablecoin that’s backed by U.S. dollars. If released into the wild, the USD-based cryptocurrency would be issued to select Walmart retailers and partners while the patent’s description explains the coin could be used outside of Walmart’s retail scope as well. Walmart’s patent follows Facebook’s recent Libra announcement and the ‘Walmart coin’ specifications are similar to the social media giant’s project as well. Also Read: Pre-Register for Bitcoin.com’s New Crypto Exchange to Win Bitcoin Cash Prizes Walmart Files Patent for a Digital Stablecoin Back by USD Big-name corporations have been announcing the creation of their very own cryptocurrencies and the news has been a hot subject within the crypto community. It all started on June 18 when Facebook announced the launch of Libra, a stablecoin that will be available in Messenger, Whatsapp and as a standalone app, with the company expecting to launch the product in 2020. However, Facebook’s project riled up politicians and immediately got regulatory pushback from worldwide leaders and threats from U.S. congressional members. Walmart’s U.S. patent #2019023656 Now Walmart is stepping into the ring to test its own blockchain technology as the company has filed a new digital currency patent that describes a stablecoin backed by USD. Walmart’s coin, if developed, could be easily be tested at its 11,368 hypermarkets, department stores and grocery clubs located in 27 countries. The Walmart coin was created by Robert Cantrell, David Nelms, John O’Brien, and Brian McHale. The patent’s abstract description states: “[The] method includes: generating one digital currency unit by tying the one digital currency unit to a regular currency; storing information of the one digital currency unit into a block of a blockchain; buying or paying the one digital currency unit.” “The digital currency may be pegged to the US dollar and available for use only at selected retailers or partners. In other embodiments, the digital currency is available for use anywhere. The digital currency can provide a fee-free, or fee-minimal place to store wealth that can be spent, for example, at retailers and, if needed, easily converted to cash,” Walmarts filing adds. Walmart Coin will be a stablecoin backed by USD. Walmart Coin Aims to Help Low-Income Households That Find Banking Expensive A closer look at the filing shows that the Walmart coin concept offers a number of features like “pre-approved biometric (e.g., fingerprint or eye pattern) credit” and could store a user’s transaction history and give loyalty points. Much like Facebook’s Libra, the coin produced by Walmart aims to help low-income families worldwide. “Using a digital currency, low-income households that find banking expensive, may have an alternative way to handle wealth at an institution that can supply the majority of their day-to-day financial and product needs,” the Walmart filing details. “In some embodiments, retailers may be directly to aid organizations for assistance that may be used to provide goods. Retailers may tie into assistance that can provide vehicles or funding for vehicles to get goods to customers when the customers do not have sufficient mobility otherwise,” the patent reveals. Is Walmart Coin the Corporation’s Second Attempt to Become a Bank? The news comes years after Walmart attempted to become an industrial loan company (ILC) but got pushback from politicians and regulators. Bankers and anti-Walmart groups forced politicians to pass laws to stop Walmart in its tracks from opening bank branches. Because of the opposition, Walmart’s application filed with the Federal Deposit Insurance Corporation (FDIC) never gained traction. Just like when Facebook announced Libra, congressional leaders scheduled two public hearings with Walmart over the ILC attempt. During the end of the debate against massive opposition, Walmart removed certain retail banking goals and focused solely on payment processing. Interestingly, the department store’s competitor Target was granted approval by the U.S. government to operate an ILC but skeptics think Walmart’s ILC idea was too broad. The Walmart ILC filing filed in 2005 sat with the FDIC until the corporation withdrew the request in March 2007. “We notified the FDIC today that Walmart has withdrawn the application we made in July 2005 for an Industrial Loan Company (ILC) charter,” the company revealed at the time. Walmart filed to be an industrial loan company back in 2005 but bankers and politicians stopped the company. Walmart’s latest patent filing could be another attempt to enter the banking ecosystem with a cryptocurrency instead of operating bank branches. The digital managing institution could be assigned to an independent third-party institution, Walmart’s filing highlights. Moreover, the Walmart coin could offer users interest applied to savings accounts, tied to the digital currency. “The savings can be greater when the customer buys goods that are on their shopping history and are therefore predicted,” the company patent notes, adding: Savings further making the digital currency a more attractive option for customers, and overall creating a positive cascade. Facebook and Walmart Coins That Have a Central Authority of Control Are No Threat to Cryptocurrencies Like Bitcoin Of course, after the cryptocurrency community got wind of the Walmart coin patent filing the digital currency was compared to Facebook’s Libra attempt. Coincorner’s CEO Danny Scott doesn’t believe a Walmart cryptocurrency will be competitive against BTC. “Following the announcement of Facebook’s Libra in June, this news was certainly not unexpected – in fact, we expect to see more FAANG companies filing patents for their own cryptocurrencies in the coming months,” Scott wrote to news.Bitcoin.com. “However, while the publicity is obviously good news for the crypto industry, we believe it is a waste of time and resources for these companies – something that will eventually show as time passes,” the CEO added. Scott further stated: There are already a number of decent stablecoins out there, all doing exactly the same job. The likes of Walmart or Facebook are not bringing anything new to the table, they are just hoping that with a household name behind it, their coin will naturally succeed and become the default choice. Many bitcoiners and crypto proponents don’t believe a Walmart coin will have any affect on public digital assets like bitcoin. If you are looking for a place to buy cryptocurrencies like bitcoin core (BTC), bitcoin cash (BCH), litecoin (LTC), and ethereum (ETH), get access to these digital assets here. Scott thinks that since the Libra announcement the coin has “opened a can of worms with regards to regulatory concerns” and the company recently admitted the project may not continue because of the regulatory climate. The Coincorner CEO says that Walmart’s attempt will be no different, and to him it doesn’t matter how big and influential these corporations are, the executive opined. “We remain unconcerned with regards to the risk that “Facebook Coin” or “Walmart Coin” or “The Next Big Company Coin” pose a threat to Bitcoin,” Scott stated. “No matter how big the name behind these coins, for as long as there is a central authority with control, Bitcoin has no competition.” While a patent shows Walmart is thinking about the concept of introducing a cryptocurrency, it hasn’t officially announced making a coin as Facebook did. Crypto spectators and financial pundits will be monitoring Walmart’s idea, but for now the concept is in its very early stages as a simple patent filing. Just as President Donald Trump warned Facebook, it’s likely U.S. bureaucrats will expect Walmart to apply for a federal banking charter if it follows through with producing the patent invention. What do you think about Walmart possibly creating its own cryptocurrency? Do you think the company will get pushback from bankers and regulators like Facebook did? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Walmart, Wiki Commons, Pixabay, American Banker, and Walmart’s crypto patent discovered by Brian Cohen. Do you need a reliable Bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Purchase Bitcoin page where you can quickly buy Bitcoin with a credit card. The post Banks Stopped Walmart Bank – Now the Retail Giant Hits Back With Crypto appeared first on Bitcoin News. View the full article

On July 23, U.S. Attorney General William Barr gave a speech demanding big players in the tech industry work with government agencies in providing backdoor entry points for encrypted devices and software. Per his reasoning, certain devices and messaging services pose a safety threat by providing a secure, third-party-inaccessible area where crime can rapidly proliferate. He didn’t note that this “warrant-proof encryption” also protects journalists, researchers, and individuals in areas of political unrest living under corrupt governments. Secure encryption also protects and verifies the financial assets and transactions of cryptocurrency holders everywhere. If strings of code — ideas, in essence — are now being made illegal, it would appear that a brand new battle for humanity’s free expression is just beginning. Also Read: Unbanked for Buying Bitcoin: How the Financial System Criminalizes Crypto Crypto Is Free Speech Article 19 of the UN’s Universal Declaration of Human Rights states: “Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.” Of course, governments worldwide, and the UN itself, do not abide by this proclamation, but that last point is still of critical importance. The reception, transmission, and search for information via any media “regardless of frontiers” is part of free speech. Crypto is a technology. An idea. And it’s not limited by geographical constraints or “frontiers.” It’s a means by which to impart, receive, and seek information. After all, a bitcoin transaction or encrypted message is, in essence, an expression of information. The Hypocritical Outlawing of Ideas At the end of the day, the encryption Barr is speaking out against is simply code. There is nothing nefarious about a private, secure means of communication in and of itself, as these technologies are simply tools. Much like the stupefying irony of U.S. leaders maintaining that bitcoin gets its value from “thin air” while simultaneously demanding taxes on it, Barr sounds equally absurd for his hypocrisy. The police and government agencies he refers to depend on virtually impenetrable privacy and encryption themselves to maintain their own security. His government, whose leaders warn against “Swiss bank accounts” in the pockets of crypto holders, is still busy recklessly devaluing the national currency and letting drug trafficking banks off the hook without prosecution. While this guy who redacted the Mueller report drones on about the need for transparency, Edward Snowden is still viewed as an enemy of the state, and everyday individuals are being viewed as suspected criminals before having committed any crime. Verifiably secure messaging encryption is now illegal in Australia. Australia and the Five Eyes Dragnet In his address, Barr cited Australia, which has already begun its experiment in legislation for installing backdoor entry points to encrypted communications services: Many of our international partners such as the UK and Australia are already moving on statutory frameworks. Having no federal bill of rights, Australia is an ideal place for world powers to begin their dystopian assault on cryptographic communication. If information requests are funneled through Australian channels, other Five Eyes (FVEY) alliance nations (Canada, New Zealand, U.K. and U.S.) can garner signals intelligence info unavailable due to domestic restrictions. There have already been multiple court rulings regarding the illegal outsourcing of intelligence between FVEY countries, and accusations of selling data as well. U.S. Attorney General William Barr lectures the tech industry on the evils of “warrant-proof” encryption. What This Means for Bitcoin Should the current state of crypto continue unchallenged down under, it’s not hard to imagine similar legislation increasing in scope in Australia, and also coming to other FVEY nations soon. As such, many are concerned about the safety of their crypto holdings as well as their communications. How all of this is going to affect cryptocurrencies and their related decentralized applications (dapps) largely remains to be seen. The ill-defined requirements for demanding cooperation from tech providers in Australia depend on the government’s view that “the request is reasonable and proportionate,” among other vague criteria. Should non-custodial wallets and similar services eventually be targeted, the whole feasibility of a secure and thriving trustless payment network could be called into question. If backdoors are demanded on a service, there’s little meaning in holding crypto with that service. VPNs and domain fronting might help where secure options are made illegal or unavailable in certain regions, but as the worldwide dragnet expands, users could be forced to use only centrally managed, state regulated platforms and apps — a fate much worse than cold, hard cash, as far as privacy goes. At that point, one other option would be to continue with secure money by any means possible, even if it means becoming an outlaw. Rebel Heroes of Private Freedom Edward Snowden is considered an “enemy of the state” for holding the state accountable, exposing evidence of criminal spying to the disinfectant light of day. His is a high profile example, but it is not so different, in essence, from anyone choosing to express themselves freely when there is information they wish to share — be it a strong conviction about something, a funny message to a friend or loved one, or a secure string of hashed information to provide financial relief to someone across the globe, without worrying about fees or interference from a third party. As Snowden confirmed, the NSA was using phony services promising anonymity to trap bitcoin users. Australia has made secure communications privacy outright illegal. The U.S. now wants to follow suit. In light of these realities, one cannot be too careful about staying safe and secure. Without fully open source, secure and private systems of expression — financial, linguistic, journalistic or otherwise — there is ultimately nothing to be had but the colorless, muted silence of a terrorized world afraid to say or express anything, before too long. What do you think about Barr’s comments and the Australian legislation? Let us know in the comments section below. OP-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article. Images courtesy of Shutterstock, Fair Use. You can now purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH directly from our trusted seller and, if you need a Bitcoin wallet to securely store it, you can download one from us here. The post Crypto Is Part of Free Speech, and Free Speech Is Everything appeared first on Bitcoin News. 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Initial coin offerings have seen a significant decline in popularity, but they are not to be written off completely. Although you don’t hear the term “ICO” so often nowadays, some recent regulatory developments indicate they have a place in the digital economy realm. Crowdfunding through token sales has a chance of becoming a mainstream instrument for raising capital. Also read: The Next Big Financial Meltdown Is Around the Corner, Many Voices Warn Germany’s Financial Regulator Approves €250M Coin Offering As if to prove coin offerings are not a dying genre, the German Federal Financial Supervisory Authority, Bafin, recently approved one of a decent size. Through its token sale, the Berlin-based blockchain startup Fundament Group is trying to raise €250 million ($278 million). According to the announcement, both accredited and retail investors will be able to take part in the fundraising campaign and individual investments will not be limited. The project aims to enable participants to invest in the construction of commercial real estate through its Real Estate Tokens. At this early stage, it covers three sites in Hamburg, one in the financial capital Frankfurt, and another one in the university city of Jena, Forklog reported. Fundament Group’s ERC20 tokens will allow holders to receive annual dividends of 4-8% on their investments as well as payments upon completion of the construction works. The German startup plans to conduct the token sale without an intermediary such as an investment bank, as the goal is to minimize the costs of the offering. Investors will be able to acquire the assets using either bitcoin core, ethereum, U.S. dollars or euros. Those who pay with fiat currency will receive the tokens safely stored on a hardware wallet. And as the coin offering is regulated, passing KYC is a mandatory requirement for all investors. Projects such as Fundament Group’s show that token sales may be returning, and not only in Europe but across the pond as well. In the first days of July, the U.S. Securities and Exchange Commission (SEC) approved Blockstack’s $28 million offering. The company, which is building a decentralized computing network and app ecosystem, has received permission to raise up to $50 million annually. SEC also gave the green light to the distribution of $187 million worth of Props tokens between content creators and users of the streaming platform Younow. Russia Legalizes Crowdfunding With a New Law Applicable to Token Sales The Russian Federation, which is in the top five destinations for ICOs, has adopted a legal framework to regulate the raising of capital through crowdfunding. This week, the State Duma, the lower house of Russia’s parliament, voted on third and final reading the long awaited Law “On Attracting Investments Using Investment Platforms,” commonly referred to as the “Crowdfunding Law.” The bill, which is part of a whole package aimed at regulating the Russian digital economy, including the crypto sector, introduces some key new terms such as “utilitarian digital rights.” These include the right to demand the transfer of objects, the performance of work, or the provision of services as well as the transfer of exclusive rights to the results of intellectual activity. The new legislation establishes rules and regulations that will govern crowdfunding platforms. For example, they will be required to have at least 5 million rubles (almost $80,000) of their own capital. The Central Bank of Russia (CBR) will keep a register of the entities that operate them and closely monitor their activities. The law also introduces safeguards for “unqualified investors.” They will be allowed to spend only up to 600,000 rubles ($9,500) annually on all crowdfunding platforms in Russia. At this stage, cryptocurrencies are not explicitly mentioned in the crowdfunding law, although many of its texts are applicable to the crypto industry. The biggest shortcoming of the new legislation is its reliance on substatutory acts adopted by the CBR which remains opposed to the full legalization of decentralized currencies. Another problem is that in order to fulfill its full potential, the bill needs other laws that regulate the rest of the crypto space. Russia has been postponing the adoption of its main crypto-related bill, the Law “On Digital Financial Assets,” for over a year now, despite several deadlines set by President Putin’s administration. The last one, July of this year, is not going to be met either. The draft, which was voted on first reading in the spring of 2018, is likely to be adopted in October, according to Anatoliy Aksakov, chair of the parliamentary Financial Market Committee. By that time a common position between various Russian institutions should be achieved with respect to the regulation of cryptocurrencies. Aksakov also noted that all three bills in the regulatory package – which define digital rights, legalize smart contracts, and regulate crowdfunding – are closely interconnected. He believes a compromise between the positions of various Russian regulators and authorities is possible. “By October 1, this issue should be settled by law. Readiness is high and we are going to work hard in September,” the lawmaker was quoted saying by the Parliamentary Gazette. Regulations Bring Coin Offerings Into the Mainstream Beside Russia, many other countries have so far adopted legislation that regulates crowdfunding in one degree or another. In Belarus, for example, a decree signed by President Lukashenko entered into force in March of last year legalizing crypto-related activities including the issuance, storage, and trading of digital tokens. Estonia attracted many startups with crypto-friendly legislation and a great number of ICOs offered in other jurisdictions are actually conducted by entities registered in the Baltic country. In the United States, which is the leader in terms of number of conducted coin offerings, the challenges for companies raising capital through token sales have changed significantly over the past couple of years. While many ICOs were initially conducted under the assumption that the issued coins represented utility tokens, a number of official statements and regulatory actions have indicated that U.S. authorities view most ICOs as offerings of securities that fall within the scope of the country’s securities laws. Initial coin offerings in China were effectively banned with a circular issued by the People’s Bank and other financial regulators in the fall of 2017. The document determined that ICOs represented an illegal fundraising activity. In Hong Kong, however, digital tokens sold for crowdfunding purposes are regarded as securities and ICOs can be conducted by licensed entities as a regulated activity. Unlicensed issuers can also sell tokens provided they work with authorized institutional investors. Are ICOs Returning? Initial coin offerings took a hard hit during the prolonged crypto winter that set in last year after the all-time highs of late 2017. According to data compiled by the rating platform Icobench, with a few exceptions, the number of ICOs has been generally decreasing since August 2018, when 321 ICOs were published. A low of 58 coin offerings was reached in February of this year. However, there’s been a slight increase in May, with 88 token sales. It coincided with the latest period of rising crypto prices which started in April. More than 90% of the ICOs tracked by Icobench have already ended, 6% are ongoing and around 2% are upcoming. The 5,639 coin offerings are from 25 different industries, with the great majority collecting funds to create a new platform or provide products and services related to cryptocurrencies. With 751 ICOs and $7.5 billion of capital raised, the U.S. is topping the charts. Singapore, U.K., Russia and Estonia are hosting the largest number of ICOs after the United States, while the British Virgin Islands and Switzerland are in the top five by raised funds. A monthly report published by Icobench in early June shows there’s been a decrease of the total funds raised in ICOs to $230 million and the average funds raised by a project to $7.4 million in comparison with the previous period’s almost $1.2 billion and $29.7 million respectively. At the same time, the share of ICOs that have raised any positive amount of funds remained above the general average. June recorded 31 successful ICOs with a success rate of 28%, an indicator calculated by dividing the ICOs that raised funds by the ICOs which ended. Initial exchange offerings (IEOs) continue to enjoy rising popularity and over $1 billion were raised through IEOs in May. The report notes there had been 182 IEOs by the end of June and they have raised a total of $1.597 billion with a success rate of over 60%. Around 90% of the funds have been raised on the top five launchpads, with Coineal leading by number of IEOs and Bitfinex topping the list by raised funds. Many projects conducting initial coin offerings accept not only fiat money for their tokens but also major cryptocurrencies. If you are new to the crypto space but you are willing to participate in the industry, you may need an easy and secure way to acquire digital assets. Bitcoin.com offers you the opportunity to purchase bitcoin cash (BCH), bitcoin core (BTC) and other leading coins such as ethereum (ETH), ripple (XRP), litecoin (LTC) and Binance coin (BNB). You can do that using a credit card and without visiting a cryptocurrency exchange. Do you expect ICOs to regain popularity with rising cryptocurrency prices? Share your thoughts on the subject in the comments section below. Images courtesy of Shutterstock, Icobench. Do you need a reliable bitcoin mobile wallet to send, receive, and store your coins? Download one for free from us and then head to our Buy Bitcoin page where you can quickly buy bitcoin with a credit card. The post Large Regulated Token Sales Indicate ICOs May Be Coming Back appeared first on Bitcoin News. View the full article

Digital currency markets have been meandering sideways for a few days as most of the top crypto prices have been consolidating. Some traders believe there will be a big bullish rise after the current slump, while others think crypto prices may sink even lower. Amidst the crypto market uncertainty, economists worldwide are predicting a great recession looming in the backdrop. Also Read: 10,000 American Cryptocurrency Owners Will Receive Warning Letters From the IRS Persistent Consolidation On Sunday, July 28 the entire market capitalization of digital assets is around $263 billion and there’s been $43 billion in 24-hour global trade volume. Digital currency market caps, individual coin prices, and overall global trade volumes have dropped significantly since June. Currently, the price of bitcoin core (BTC) is hovering around $9,500 with around $13 billion in daily trade volume. During the early morning trading sessions on July 28, more than 68% of BTC trades are paired against tether (USDT). Following BTC’s lead, ethereum (ETH) holds the second largest valuation as each ETH is swapping for $209. Ethereum markets have roughly $5.7 billion worth of Sunday’s overall trade volumes. Ripple (XRP) is still hanging tight in third position and each XRP is swapping for $0.31. At the time of writing, there’s only $841 million in global trade volume for XRP. The fourth largest market valuation belongs to litecoin (LTC), which has seen around $2.3 billion in daily trades. Each LTC is trading for $89 per coin and a market cap of about $5.6 billion. Lastly, bitcoin cash (BCH) is hovering around $307 and there’s been $1.2 billion swapped in the last day. BCH has a market valuation of around $5.4 billion this Sunday. Mike Novogratz Predicts BTC Prices Could Surpass $20K by the Year’s End Despite all the recent red within the crypto charts, many enthusiasts are expecting a return to green in the long run. A number of digital asset supporters suspect that institutional interest has entered the crypto scene and Galaxy Digital CEO Mike Novogratz believes BTC will surpass its all-time highs this year. During his interview with Bloomberg on July 25, Novogratz opined that there’s a good chance that BTC will consolidate for a while but by the end of 2019 he thinks the price could blow past $20,000. The Galaxy Digital CEO said it was also exciting to see the upcoming launch of Facebook’s Libra project and Telegram’s digital currency as well. Novogratz thinks that because these platforms already have a large user base the experiment will be interesting. “In about two or three months Telegram is launching their blockchain,” Novogratz explained. “Telegram is about 218 million users — So before Facebook launches we are going to have a real view at an experiment called Telegram, where they also have a user base.” Bitcoin Cash Market Indicators Show a Possible Breakout Imminent A few crypto traders eyeing the price of bitcoin cash (BCH) believe that there could be a breakout in the near future. A technical analysis published on July 27 insists that the bullish trend is currently “very strong on bitcoin cash.” “As long as the [BCH/USD] price remains above the support at 312.38 USD, you could try to benefit from the boom — The first bullish objective is located at 318.18 USD — The bullish momentum would be boosted by a break in this resistance. Buyers would then use the next resistance located at 325.51 USD as an objective,” the analysis reads. The technical price examination continues: Crossing it would then enable buyers to target 332.33 USD — Be careful, given the powerful bullish rally underway, excesses could lead to a possible correction in the short term. If this is the case, remember that trading against the trend may be riskier. It would seem more appropriate to wait for a signal indicating a reversal of the trend. Another BCH/USD price forecast written by Saad Murtaza on the same day shows similar findings. Murtaza’s data shows that the price of BCH is breaking against BTC. Murtaza emphasizes that the recent BCH price increase has taken the price action above the 10-day moving average (MA). But the price fell short when it reached the 20-day MA and it’s been trading sideways ever since. “This has caused the ten-day MA to increase and is possibly going to push the price for a breakthrough above — The same thing is happening to the MACD and supported by the RSI across all short-term charts up till 12-hour frames.” Murtaza’s analysis noted. “A breakout may occur soon; however, the ascending triangle shows strong resistance. If price breaks above, it will demolish the previous resistance as well as it coincides with the triangle’s resistance.” Grayscale Research Finds 36% of American Investors Consider Buying Bitcoin Grayscale Investments and Q8 Research released a study this month which surveyed a group of 1,100 U.S. investors. Within this portion of the investment community, the survey found that more than a third (36%) of investors would consider an investment in bitcoin. The study reveals the majority of the investors who participated (83%) were “strongly motivated by the idea that they could invest small amounts in bitcoin today.” “Since its introduction in 2009, bitcoin has steadily grown in popularity and today has expanded its reach to a broad mainstream audience,” the research report explains. The Grayscale and Q8 Research study adds: Investors are constantly looking for new ways to diversify their portfolios as traditional assets and markets have begun to move more closely in sync with one another. Increasingly, savvy investors recognize that bitcoin and other digital currencies may have unique investment characteristics that provide diversification far beyond the basic 60% stock/40% bond portfolio allocation. Global Economists Fear Recession Is Looming in the Backdrop Headlines concerning the world economy continue to hint at an impending recession and economic turmoil. In Hong Kong during the protests, the country’s Finance Secretary Paul Chan told the public this week the protesting has caused unemployment and hurt local businesses. “For foreign tourists and enterprises, the unrest in Hong Kong dampens their appetite for traveling and investment,” Chan’s translated statements detail. Precious metals markets and cryptocurrencies are still outperforming nearly every major financial asset. In the U.S., economists fear the American economy is on the brink of recession despite the nation’s gross domestic product increases. This is because economists believe the Federal Reserve is poised to lower interest rates soon. Meanwhile, in the U.K., political economists think a no-deal Brexit is on the horizon according to U.K. Prime Minister Boris Johnson’s statements. Reports state that the region is preparing a no-deal Brexit because the European Union does not plan to renegotiate the prior withdrawal agreement. The looming global recession has fueled the spot gold markets as having consolidated above $1,400 per troy ounce of .999 fine gold. Similarly, cryptocurrencies touched 2019 all-time highs in June and most have consolidated after a slight correction. Digital asset prices are still far higher than they were in January and many top coins have steadily increased month after month. No one really knows how the predicted global economy’s recession will affect digital currency markets, but typically during these times of hardship, the price benefits. This was the case for bitcoin markets during the crisis in Cyprus, Greece, and the last Brexit. So far, most of the top assets are moving sideways and it’s likely big players are finding new positions. Besides the last few days of sideways action, over the last few weeks, digital asset markets have been awfully volatile, playing out a crypto game of musical chairs. Depending on who you ask, traders predict BTC prices could drop to between $7,000-8,000, while others believe markets will see an upward trajectory toward $14K. Where do you see the price of bitcoin cash and the rest of the crypto markets heading from here? Let us know what you think about this subject in the comments section below. Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.” Prices and data were recorded on Sunday, July 28, 2019 at Images via Shutterstock, Trading View, Bitcoin.com Markets, Grayscale, and Pixabay. Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely. The post Market Outlook: Crypto Prices Consolidate as Economic Uncertainty Looms appeared first on Bitcoin News. View the full article

When we think of the unbanked, we envisage citizens of developing nations who lack the means and documentation to obtain access. But you don’t have to be a Mongolian goat herder to find yourself financially excluded. In the West, relatively affluent citizens are having their banking services withdrawn suddenly and without warning. Their ‘crime’? Buying and selling bitcoin. Also read: 10,000 American Cryptocurrency Owners Will Receive Warning Letters From the IRS A 20-Year Banking Relationship Broken by Bitcoin Banks, like politicians, are a necessary evil. Few people wax lyrical about them, but begrudgingly accept that they are an unavoidable part of civilized society. In the 20 years I’ve banked with Natwest, I’ve had plenty of cause to bitch about them. Their service is poor and their products inadequate, and like most of their kind, will have gone the way of print media in a decade, as better forms of money and better means of doing business render the banking system obsolete. In the here and now, though, I depend on my bank, because a man can’t live on crypto alone. Screw these guys. Banking is one of the few constants in our lives. Friends and employers come and go, but ever since opening an account in our formative years, we are prone to sticking with our bank through thick and thin. I was no different up until Wednesday, when my tenure with Natwest came to an abrupt end after they pulled the rug from under my feet, prompting me to rage quit. As a result, I no longer have a bank account, a resource that most people my age would not only take for granted, but would have toiled over for years to accrue a five-figure balance at minimum. The story of my banking blockade isn’t tragic or deserving of sympathy. But it warrants telling nonetheless, for it will be familiar to a number of readers who have bought or sold bitcoin. If this can happen to me, it can happen to anyone. A Plague on All Your Banking Houses Like most people who work in the cryptoconomy, I have cause to cash out bitcoin for fiat sporadically to pay the bills. I’ve used Localbitcoins (LBC) for this purpose since 2013, typically selling a couple of hundred bucks at a time, with the buyer transferring the funds to my bank account. On occasions, I’ve had cause to sell higher amounts, but never enough to trigger money laundering checks or prompt awkward questions from the bank. I’m not that dumb. As a result, I’ve successfully completed hundreds of trades on LBC without triggering the involvement of my bank. All that changed in an instant on Wednesday. I went to meet a mate for a drink, but when I tried to withdraw cash from an ATM, my card wouldn’t work. I went into the bar and tried to pay by card, asking the barman to run it through the machine before pouring my pint. It was also declined. Figuring Natwest’s entire banking system might be down (not everything runs as reliably as Bitcoin), I opened my mobile banking app, only to find I was locked out of that too. As someone who works in cryptocurrency, I’m acutely aware of the risks posed by social engineering, and it was at this point that I glanced at the 4G symbol on my phone to check I hadn’t been SIM swapped. Mercifully, nothing seemed to be amiss there, but I was still without access to funds, and no closer to finding out why. As anyone who’s ever had their card blocked while abroad will attest, it induces a feeling of helplessness coupled with embarrassment at having your purchase declined. I wasn’t freaking out, but I was pissed off. Now I would have to phone my bank in a bid to find out what was wrong. I hate phoning people. ‘Suspicious Activity’ 10 minutes of pre-recorded disclaimers and muzak later and I was connected to a telephone operator who confirmed that a block had been placed on my account, but they couldn’t inform me why – that would require transferring me to another department, with another dash of muzak while I waited, for good measure. “Okay, so there’s been a block placed on your account because we’ve been asked to investigate two suspicious transactions dating from the third of May,” I was told. “There’s one for £1,000 and another for £8,000 with pay-in references … do you recognize these?” A couple of points immediately stood out. Firstly, these incidents took place six weeks ago, and they’re only acting on it now? And secondly, I can’t even recall what I had for breakfast yesterday – how am I meant to recall two of the several hundred transactions to pass through my account since the start of May? Especially since I can’t log in and view the information pertaining to them, because I no longer have banking access. Incidentally, losing your banking account doesn’t just cut off your funding: you also lose access to all the payment details you had stored for friends, direct debits, child support, car insurance and the rest. You have to message clients telling them not to pay into your account and friends requesting they resend their banking details. It’s a total ball-ache. Bitcoin Is Bad, M’kay? Based on the pay-in references the banking official reads off, I’m all but certain these are Localbitcoins sales, though I’ve no idea why they should have been flagged as suspicious. £1,000 isn’t remotely high enough to trigger AML checks, nor is it the highest amount I’ve ever cashed out. I refrain from mentioning the B-word to the banker, not because I fear the repercussions of admitting to trading bitcoin, but because it’s none of his god-damn business. I have no idea who I sold those coins to – they were two pseudonymous usernames out of hundreds on LBC – and I don’t want to know either. I couldn’t care less whether the bitcoin I sold them was being used to purchase methamphetamine or depleted uranium: that’s none of my business. Moreover, even if I wanted to due diligence my counterparties, I would have no means of doing so. What I do know is this: the people I sold those coins to were regular LBC traders, who do this sort of thing day in, day out. As a result, the likelihood of those two transactions involving any sort of fraudulent or nefarious activity is extremely low. I don’t tell any of this to the official on the other end of the line. Instead, I maintain my calm and point out the inconvenience of having my account shuttered without warning, cutting off all financial access. I point out that if the bank wanted to discuss these transactions with me, they have all my details – phone, address, email – and thus there was no need to freeze my account to get my attention. I then suggest that if they wish to obtain my assistance in investigating these “suspicious” transactions, restoring my account would be a good first step. The employee tells me they can’t do that until I’ve complied with the request, and that’s when I politely tell him where to go. “We’re through.” I hang up the phone, and at that moment, my 20-year relationship with the banking world comes to an end. Sure, I could cooperate and beg for my account back, but that’s not my style. I have a problem with authority and being told what to do. Besides, how do you prove a negative, and show that a crime hasn’t been permitted? Fuck you Natwest and the horse you rode in on. Fuck you Natwest, Clydesdale, Wells Fargo and every other crumbling bank that thinks it can decide how its customers should spend their money. Your demise can’t come fast enough. Thanks for reaching out to us. Unfortunately, Wells Fargo does not allow transactions involving cryptocurrency. -Josh — Ask Wells Fargo (@Ask_WellsFargo) July 12, 2019 Same Shit, Different Customer On the very same day that I was rage quitting on Natwest, I received a message from another LBC trader. He had no idea of the ordeal I’d just experienced, but had one of his own to share. “I feel like I’m being hounded by the banks,” he began. “Not only has my 20 year old halifax acc had a block put on it, but now my Revolut acc has been frozen with all my cash in there! Which bank, or fintech bank would you recommend using for this kind of business?” I wasn’t in a position to recommend any banks, but I was interested in learning more about his predicament. He continued: “Revolut wanted me to explain where I got the 800 quid to start trading, I told them the truth – I sold a bike, an ipad. I then had to show them my trading history on lbc, then they asked for my tax statement(??), I told them I don’t have a tax statement, they then asked again!” ‘Crypto’ bank Revolut hate it when their customers use crypto. The intrusive and unreasonable questions didn’t stop there. Revolut proceeded to ask the guy why he had 50-100 BTC trading volume listed on his LBC account (which, for the record, is a low amount). He told Revolut that he was trading in an Asian country during the 2017 boom, before moving back to the UK, whereupon he decided to use what little money he had to try again. At this point, Revolut asked to see his residency permit for the country he’d been in. He explained that he wasn’t a resident there, and they asked him to produce his travel visa instead, which he reluctantly did. Revolut then said they would get back to him. Meanwhile, his account containing £800 remains suspended. Unregulated peer to peer money is an existential threat to all governments. Why? Simple. To govern is to control. Money that doesn't allow centralized issuance or control strikes directly at this. This fight has only begun. Freedom money won't be free. — Palley (@stephendpalley) July 28, 2019 Frozen, Seized and Shuttered for What Exactly? It’s hard to work out what any of this has to do with bitcoin – or to crime for that matter. Blackstone’s ratio famously holds that: “It is better that 10 guilty persons escape than that one innocent suffer.” The banks and their cronies – the governments and three-letter agencies including the IRS – would rather that 10 innocent people be criminalized than one guilty person should break the law. In the U.S., there are citizens currently facing jail for trading bitcoin. And we’re not talking about real crimes here, either: we’re talking about invented meme crimes like money laundering, which only exist because of a war on plants. But I digress. The point of this lengthy diatribe is thus: until such a time as it’s possible to be out and proud about bitcoin, keep that shit schtum. Don’t mention it to your bank, hint at it, or receive a pay-in reference that could be in any way associated with it. Even if you do take all reasonable precautions, however, if you’re a frequent bitcoin trader, you’re liable to fall foul of the banking system sooner or later. When that happens, you’ll have two choices: grovel to have your account reinstated, or flip them the bird and take your business elsewhere. Somewhere in the remains of my debit card is a metaphor for my relationship with Natwest. As for me, I think I’m gonna go dark for a while. I’ll still sell coins on LBC and local.bitcoin.com, but I’m not clamoring to open another bank account any time soon. After 20 years, it feels strangely liberating to no longer be at the mercy of the banks. Bye, Felicia. Have you experienced banking issues for buying or selling bitcoin? Let us know in the comments section below. Images courtesy of Shutterstock. Are you looking for a secure way to buy bitcoin online? Start by downloading your free bitcoin wallet from us and then head over to our Purchase Bitcoin page where you can easily buy BTC and BCH. The post Unbanked for Buying Bitcoin: How the Financial System Criminalizes Crypto appeared first on Bitcoin News. View the full article

Crypto assets have come a long way since Bitcoin. What started out as a P2P payment system has spawned an array of use cases that extend far beyond the original designation of cryptocurrency. While the primary function of crypto assets such as ETH and BTC is a matter of some debate, what’s indisputable is that digital currencies can now be used for more than merely paying for goods and services. Here are five use cases for crypto assets that demonstrate the extent of the fintech revolution taking place. Also read: 10,000 American Cryptocurrency Owners Will Receive Warning Letters From the IRS Use Case 1: Digital Cash Conceived as a peer-to-peer electronic cash system, if the title of Satoshi’s whitepaper is to be taken at face value, Bitcoin lived up to its billing for the first five years. Before the mainstream came to terms with Bitcoin, it fueled a nascent digital economy that included black market goods (Silk Road) and gambling (Satoshi Dice). It was also accepted by hundreds of tech-savvy merchants and early adopters, for purchasing everything from graphics cards to t-shirts. As network fees began to rise, forcing numerous merchants to drop support for BTC, a growing cult of Bitcoin Core loyalists, who would come to be known as maximalists, started advocating a store of value (SoV) narrative over that of a medium of exchange (MoE). With BTC becoming unsuitable for low cost payments, the P2P torch passed to Bitcoin Cash, which sprung to life in mid-2017 as a fork of Bitcoin. The BCH network has since maintained its community’s goal of facilitating fast and low-cost payments, with thousands of merchants accepting bitcoin cash in store and online. Meanwhile, during the 2017 ICO boom, scores of crypto projects sprung up with generic payment tokens attached to them as the justification for raising funds. When the tide went out on the crypto market in early 2018, it became evident that native ERC20 payment tokens simply weren’t feasible, with most dying a slow death due to high velocity and low liquidity. The crypto assets that survive today as P2P currencies are largely limited to pre-2015 coins such as dash and litecoin. Use Case 2: Programmable Money Smart contracts actually predate Bitcoin, having been conceived by Nick Szabo (who is himself credited with being one of the likelier candidates to be Satoshi Nakamoto). Smart contracts are simply blockchain-based executable code that actions a particular outcome provided certain conditions have been met. Although synonymous with Ethereum, most crypto networks have a degree of smart contract functionality, including Bitcoin itself. RSK has devised a smart contracting platform that capitalizes on the security of the Bitcoin blockchain and its network effects. As BTC’s dominance over altcoins has grown this year, so has the appeal of building on Bitcoin ahead of less decentralized alternatives such as Tron and EOS. As a result, developers that might have previously flocked to so-called “second-gen” blockchains, have had cause to look at Bitcoin in a whole new light. As for the Bitcoin Cash network, Simple Ledger Protocol has facilitated the issuance of sub-tokens, created using opcodes that Satoshi originally incorporated into the Bitcoin protocol. Use Case 3: Collateral Lending has become one of the most important applications of the burgeoning decentralized finance (defi) movement, enabling individuals to collateralize fiat loans against cryptocurrency and vice-versa. On the Ethereum network, lending services such as Maker, Compound, and Instadapp have flourished, with hundreds of millions of dollars’ worth of assets now locked up in lending protocols. Other defi lending solutions include Dharma and Dydx, while centralized alternatives include Salt, Youhodler, and Nexo, which allow people to obtain a fiat loan in exchange for locking up their crypto. There’s also the option for hodlers to earn annualized interest by locking their cryptocurrency into these lending protocols. Use Case 4: Governance Governance might not sound like the most exciting of use cases for cryptocurrency, but on-chain voting is a very effective means of ensuring provable voter turnout. Bitcoin miners have long engaged in primitive governance by signalling support for protocol changes by signing new blocks; in June 2017 for instance, 80% of the BTC network’s hashrate was adding the letters “NYA” to blocks in support of the New York Agreement (which ultimately failed). Aragon Network Vote #3 is now over! The results have been locked in using the Aragon Governance Voting apps:https://t.co/b3JJ2FDz6C Here is a thread with the results from the vote: — Aragon (@AragonProject) July 27, 2019 Blockchain governance has gotten more sophisticated since then, with Dash, introducing a successful budget voting mechanism that’s been emulated by scores of projects. There are now crypto assets whose primary function includes governance, such as 0x, maker, decred and dfinity. In addition, crypto projects such as Aragon incorporate governance through enabling token-holders to vote on key decisions using a dapp. So far, participation in on-chain governance has been low for crypto projects, showing that voter apathy is a universal problem. Use Case 5: Collectibles Non-fungible tokens (NFTs) represent unique digital assets. These typically comprise in-game collectibles such as skins or characters, or in virtual reality games can represent digital land or property. This makes it possible to trade the assets to fellow collectors or players, and ensures full ownership of the collectible. That’s not to say that NFTs are fully decentralized, however, as their value still depends on a central authority, say Cryptokitties or Cheeze Wizards, which hosts the image associated with each token and controls the virtual world it operates in. Nevertheless, collectibles represent a growing vertical within the cryptosphere, with NFTs likely to become deeply embedded into esports and virtual reality in the years to come. Evolving Applications for Crypto Assets Cryptocurrencies are still young, and thus many of the envisioned use cases for them have yet to fully materialize, often because the infrastructure is still being built. Security tokens, hybrid tokens, derivatives, crypto commodities, privacy coins, stablecoins, work tokens, discount tokens and many more have still to establish themselves, but are likely to gain a foothold as crypto adoption increases and the ecosystem matures. From national reserve currency to time-stamping documents, Bitcoin continues to prove its versatility. One of the best things about permissionless networks is that anyone can use them however they see fit, be it at the base layer or via secondary and tertiary layers. The crypto space has evolved in leaps and bounds over the past decade. 10 years from now, crypto assets will be serving functions that we have yet to envisage, let alone design. What other use cases do you envisage for crypto assets in the future? Let us know in the comments section below. Images courtesy of Shutterstock and Defi.pulse. Are you a developer looking to build on Bitcoin Cash? Head over to our Bitcoin Developer page where you can get Bitcoin Cash developer guides and start using the Bitbox, SLP, and Badger Wallet SDKs. The post Five of the Most Important Use Cases for Cryptocurrency appeared first on Bitcoin News. View the full article

On July 23, the CEO of Btc.top, Jiang Zhuoer, debated Nchain’s chief scientist Craig Wright in regard to the civil war between BCH and BSV that took place in November. Amid the debate hosted by Bitkan, Zhuoer highlighted the top three advantages tied to the Bitcoin Cash ecosystem. During the dialogue, Zhuoer also emphasized that the infrastructure Satoshi Nakamoto left behind is very advanced and can “achieve very high performance” rate using the BCH network. Also Read: SLP Developers Publish Specs for a Unique Type of Non-Fungible Tokens Btc.top CEO Jiang Zhuoer Cites the Advantages of the Bitcoin Cash Blockchain and Community Jiang Zhuoer leads the Chinese mining pool Btc.top, which is one of the top SHA-256 mining operations by hashrate within both the BTC and BCH networks. On July 23, Zhuoer had a debate with Nchain’s Craig Wright, the man who claims to be Satoshi Nakamoto. The debate was hosted by Bitkan and started with a separate interview with Zhuoer for 20 minutes, and another private interview with Wright for the same amount of time. Then for another 20 minutes the two debated during a roundtable discussion that allowed them to interact freely. Wright’s stance was filled with BSV gigabyte block size talking points with pro-government Bitcoin themes as well. Zhuoer, however, explained in great detail why he thinks Bitcoin Cash (BCH) has three unique advantages and is following the path Nakamoto intentionally designed. Btc.top CEO Jiang Zhuoer. “I support BCH because BCH implements Nakamoto’s design for Bitcoin — And the title of the Bitcoin white paper is “A Peer-to-Peer Electronic Cash System”, hence, Bitcoin is designed as electronic cash,” Zhuoer responded when asked for the top three unique advantages BCH has compared to other mainstream cryptocurrencies. “The ultimate goal of Bitcoin is to become a world currency, a currency that everyone in the world can use, to bring monetary freedom to the world, so that the money in our hands is not inflated, not restricted by borders, and doesn’t get plundered.” The Btc.top CEO added: To achieve this goal, Bitcoin needs to expand the block to accommodate more and more users — Nakamoto also made a clear plan to increase the block size. Two Bull Runs Show BTC’s Weaknesses Zhuoer insisted that in 2014, the Bitcoin Core (BTC) development team acted stubbornly and were against Nakamoto’s original plan. The disagreement got so elevated that it eventually led Bitcoin to split into two currencies, BTC and BCH, in August 2017. The Btc.top executive said the developments that followed indicated to him that BCH is correct for wanting to expand the block size limit during the dispute. Zhuoer’s chart shows how BTC network fees and congestion started to rise during each bull run. The hard evidence of this stemmed from the bull run in 2017 when the BTC mempool was congested with tens of thousands of transactions and network fees spiked to between $30-50 per transaction. These issues conflicted with Satoshi’s true vision, Zhuoer asserted, and he doesn’t seem to believe Segregated Witness and the Lightning Network will solve BTC’s problems. Zhuoer stressed: The lightning network is also almost useless. During the price increase in May 2019, the same congestion appeared as it did previously in 2017 and the transaction fee percentage spiked significantly. Bitcoin Cash Attributes: Direction, Community Spirit, and Infrastructure Not only did Zhuoer speak on the subject, he also provided factual data and charts showing the BTC price increase pushing the network’s fees up during the last two price surges. Zhuoer predicts that the bull market that precedes the next halving will see BTC suffering from severe congestion. The pool operator does not believe the scaling concepts Core developers introduced so far will solve the problem before this timeframe. From here, Zhuoer highlighted the top three advantages that are unique to the Bitcoin Cash ecosystem: The right direction: Decentralized + large block, and a high number of users. Community spirit: Rational and pragmatic. Infrastructure: Layered design, onchain trading, and smart contracts that do not interfere with each other. Zhuoer mentioned how BCH follows the Chinese mantra of “the golden mean,” which means the BTC block size limit is too small and network fees are costly during congestion. On the other hand with BSV, the block size is too big at 2GB and the chain will likely become like EOS, in Zhuoer’s opinion, with only a few centralized nodes. The golden mean of Bitcoin Cash is a path or middle way between the extremes of BTC and BSV. Zhuoer believes that Satoshi implied that the block size could be increased without difficulty. The mining pool CEO further opined that the developers and community behind BCH are rational and pragmatic because they don’t make “empty promises like Core.” Moreover, Zhuoer insisted that Core’s decentralization method is contradictory when the developers strive to make it so Raspberry Pis can run a whole node, but allow transactions to become expensive. Zhuoer also said that Ethereum suffers from this issue and “the capacity of BCH is larger than ETH.” Zhuoer continued: BCH can carry the users who can’t stand the congestion of BTC and ETH, and BCH can gradually accumulate its own users to meet a healthy cycle. Jiang Zhuoer is a well-respected mining pool operator among BCH supporters and many community members will recall his “Hash War” series of posts he wrote last November. At the time, the Btc.top CEO said that if Bitcoin participants have different goals then the protocol “should be forked.” “Let the market choose which one is right,” Zhuoer explained. In the second part of the series Zhuoer said: Both parties believe that [Bitcoin] should become the global currency of 5 billion people, but the means used by [each development team] are different to achieve this goal. After listening to Zhuoer’s words, it is clear that he thinks BCH triumphed over the BSV chain and is skeptical of BSV’s 2GB block size. He also called Wright and the BSV path “extreme” and the concept of locking the protocol back to the original 0.1 protocol is “ridiculous” in Zhuoer’s opinion. Wait wait wait… how many orphaned blocks?!? pic.twitter.com/fiwZHGzBdF — checksum0 (@checksum0) July 25, 2019 The Bitcoin Cash community seemed appreciative of the Btc.top executive’s statements, with one person saying they found his words to be “an extremely rational, informed, and unbiased dissection of the issues.” “Jiang’s full-length post (in Chinese) is worth reading, glad it’s been partly translated even with some errors,” another BCH supporter wrote. The full transcript of Jiang Zhuoer’s post can be read here and you can also watch the debate between Zhuoer and Wright here using the Bitkan application. What do you think about Btc.top CEO Jiang Zhuoer’s statements about the Bitcoin Cash (BCH) network? How do you feel about his opinions concerning other chains like BTC and BSV? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Btc.top, Jiang Zhuoer, Twitter, Bitkan, and Pixabay. Are you a developer looking to build on Bitcoin Cash? Head over to our Bitcoin Developer page where you can get Bitcoin Cash developer guides and start using the Bitbox, SLP, and Badger Wallet SDKs. The post Btc.top CEO Highlights the Benefits and ‘Golden Mean’ of Bitcoin Cash appeared first on Bitcoin News. View the full article

On July 26, the U.S. Internal Revenue Service (IRS) announced that the tax agency has started sending letters to American cryptocurrency owners advising them to pay their taxes. According to the organization, three types of letters will be sent to more than 10,000 taxpayers by the end of August. The news follows the recent IRS taskforce slide that shows alarming recommendations on how tax agents should investigate digital currency users. Also Read: Another Self-Proclaimed Satoshi Appears in the High Profile Bitcoin Lawsuit Through Compliance Efforts the Internal Revenue Service Has Collected 10,000 Names The IRS media room has published a press release explaining that the government tax agency plans to send letters to Americans who own digital currencies. The organization’s announcement, published on Friday, says that the letters will be sent to taxpayers who have participated in virtual currency transactions or otherwise did not report past transactions properly. The IRS calls the letters of recommendation “educational” and started sending the notices last week. Through IRS “compliance efforts,” the tax agency has obtained the names of more than 10,000 Americans who will receive this correspondence. “Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest, and penalties,” IRS Commissioner Chuck Rettig explained. “The IRS is expanding our efforts involving virtual currency, including increased use of data analytics. We are focused on enforcing the law and helping taxpayers fully understand and meet their obligations.” IRS Commissioner Charles Rettig warns that Americans who receive these letters need to take them seriously. The Virtual Currency Compliance Campaign addresses individuals and businesses who don’t comply with the U.S. tax code by using “multiple treatment streams.” The IRS highlights that cryptocurrency compliance follows the “general tax principles applicable to all transactions in property.” The initial testing grounds for the campaign begins with the Withholding & International Individual Compliance unit led by Director John Cardone. Enforcement Campaigns and the Promised Issuance of Guidelines Concerning the Tax Treatment of Digital Assets The news follows the recent enforcement campaign the tax agency started in order to combat noncompliance. Through “outreach” and taxpayer “examinations” the IRS started the campaign by issuing educational resources, “audits, and criminal investigations.” The IRS recently announced that the tax agency would be issuing guidelines on the tax treatment of digital currencies. “[We] strongly urge the IRS to issue updated guidance, providing additional clarity for taxpayers seeking to better understand and comply with their tax obligations when using virtual currencies,” a group of bipartisan congressional leaders wrote to the IRS commissioner in September 2018. “I share your belief that taxpayers deserve clarity on basic issues related to the taxation of virtual currency transactions and have made it a priority of the IRS to issue guidance,” Rettig wrote responding to the request. News.Bitcoin.com spoke with Node40 CTO, Sean Ryan, last June and he said the issuance of the new guidance is long overdue. “New guidance will be forthcoming and will address specifically the three most talked about uncertainties: acceptable methodology for calculating cost basis, an acceptable methodology for assignment cost basis (FIFO, Specific Identification, etc.), and treatment of forks,” Ryan told our newsdesk. “I do believe it will be this year,” he added. Tax guidelines concerning the treatment of virtual currencies like bitcoin issued in Notice 2014-21.. Cracking Down on Noncompliance and the Tax Agency’s Ongoing Focus Furthermore, over the last couple of years, various three-letter agencies like the IRS, FBI, and others have been prosecuting a slew of Americans for illegal money transmission, particularly traders who utilize the Localbitcoins.com exchange. On July 9, a slideshow created by IRS-CI cyber crimes program manager James Daniels was published online, and proposes draconian tactics to investigate crypto users. The slide suggests investigating a person’s social media accounts and questioning family members. If needed the agents can request a Grand Jury Subpoena in order to obtain records from Apple, Microsoft, and Google. When the New York Times (NYT) questioned an IRS representative about the educational letter situation, the agent declined to reveal where the tax agency received the names of the 10,000 individuals targeted. NYT also asked Coinbase if the IRS letter recipients stem from when the IRS compelled the company to forfeit data on 13,000 users. A Coinbase representative declined to comment on the subject. The slideshow authored by IRS-CI cyber crimes program manager, James Daniels. In regard to the letters that will be delivered this August, people will receive three different versions: Letter 6173, 6174 or 6174-A. Of all the notices, Letter 6173 requires a signature from the recipient under perjury that they are compliant with the U.S. tax code. “All three versions strive to help taxpayers understand their tax and filing obligations and how to correct past errors,” the announcement states. Letter 6173 “Taxpayers are pointed to appropriate information on IRS.gov, including which forms and schedules to use and where to send them,” the press release adds. According to traders on the Reddit forum r/Bitcoinmarkets, a few individuals have already received letters and assessments. The IRS announcement on Friday emphasized multiple times that there will be continued tax enforcement and investigations. During the end of the press release the tax agency stressed: Virtual currency is an ongoing focus area for IRS Criminal Investigation The IR-2019-132, announcement on Friday, July 26. The press statement also refers to Notice 2014-21, the only guidance the agency has ever issued in regard to digital assets. Essentially the 2014 documentation states that virtual currencies are considered a “property for federal tax purposes” and those who wish to comply should follow general practices. Toward the end of the IRS announcement, the agency noted that it will issue “additional legal guidance in this area in the near future.” Even though the IRS hasn’t issued guidance in five years, the agency still warns that enforcement against noncompliance will continue to the full extent of the law. “Taxpayers who do not properly report the income tax consequences of virtual currency transactions are, when appropriate, liable for tax, penalties, and interest,” the IRS press release specifies. “In some cases, taxpayers could be subject to criminal prosecution.” What do you think about the IRS sending “educational” letters to more than 10,000 American taxpayers this August? Do you think it’s ok that the IRS enforces the law while the agency still hasn’t issued clarified guidance since 2014? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Getty Images, Wiki Commons, Pixabay, and IRS Notice 2014-21. How could our Bitcoin Block Explorer tool help you? Use the handy Bitcoin address search bar to track down transactions on both the BCH and BTC blockchain and, for even more industry insights, visit our in-depth Bitcoin Charts. The post 10,000 American Cryptocurrency Owners Will Receive Warning Letters From the IRS appeared first on Bitcoin News. View the full article

The Simple Ledger Protocol (SLP) has become a popular project within the Bitcoin Cash ecosystem because it gives anyone the ability to issue and transfer tokens in a permissionless fashion. Since the project was announced last year, there’s been a myriad of tokens created on the BCH chain. A few SLP tokens have launched on exchanges and some of these tokens have gathered real value and utility. SLP developers have now revealed a new specification, which extends the SLP token type 1 protocol allowing for the creation of non-fungible tokens that can be grouped together using a single ID. Also Read: Another Self-Proclaimed Satoshi Appears in the High Profile Bitcoin Lawsuit The Simple Ledger Protocol and Tokenization Becomes a Mainstay Within the Bitcoin Cash Ecosystem In the summer of 2018, it was well known that at some point in the near future the Bitcoin Cash blockchain would host a token creation protocol that allowed anyone to mint and transfer BCH-based tokens. During the month of July, at least four BCH token projects were revealed around the same timeframe. This was after the 32MB upgrade in the spring, which also re-enabled some old Satoshi opcodes and bumped the network’s default data-carrier-size to 220 bytes. Out of all the token projects, the Simple Ledger Protocol jumped ahead of the pack, becoming a mainstay within the BCH ecosystem. The SLP system simply draws from the transaction chain of the existing Bitcoin Cash framework. The protocol essentially uses the metadata within an OP_RETURN transaction for the issuance and transfer of tokens. “You can think of SLP as a ‘transaction within a transaction,” the project’s website explains. “SLP transactions live within a special output known as OP_RETURN, which is a part of a standard Bitcoin Cash transaction.” The website adds: If Alice wants to send Bob some tokens, she sends a minimal (dust) amount of BCH, and the transaction also contains the data to transfer the tokens. You may be interested in reading the protocol specification, which is comprehendible to the average Bitcoin-minded reader. NFT1: An Extention of the SLP Token Type 1 Protocol Today there are a bunch of tokens that have been created on top of the BCH chain using the SLP scheme. The most popular tokens used on the network according to July 25 statistics are coins like honk, spice, honk token, brave sound token, and acd. On July 11, SLP developers James Cramer and Jonald Fyookball published the first draft specification for a “simple extension to the SLP token type 1 protocol.” The documentation refers to a design called NFT1, which stands for “non-fungible tokens,” which are unique but can be grouped together. Non-fungible tokens were already possible with SLP, the developers explain, if a person created a non-divisible token with a total supply of one. The SLP programmers call these type of tokens “Simple NFTs” but NFT1s extend the protocol, allowing NFT-styled tokens to be aggregated using a single ID. “Having the ability to group NFTs in a provable manner opens the doors for many more token applications, and makes SLP more similar to other NFT protocols (e.g., ERC-721),” the Github specs note. “NFT1 uses the same validation rules as SLP token type 1 with a few additional constraints and requirements.” News.Bitcoin.com asked SLP developer James Cramer if there were plans to implement the ability to mint NFT1 type tokens using the SLP version of the Electron Cash wallet. Cramer said that “it was done in the latest code” and the feature will be in the next version release. The developer said he planned on waiting to finish an update to SLP validation to speed up the validation for big token graphs. The specification published on July 11 summarizes the method for initiating a new SLP token with NFT1 group minting. Cramer and Fyookball’s NFT1 documentation also acknowledges the developers Mark Lundeberg, Imaginary_username, and Dexx7 for suggestions and review. Rare Collectibles, Raffles, Tickets, and Blockchain Extensible Games The newly designed NFT1 concept opens the doors to even more token ideas created on top of the BCH network. NFT1s use the same transaction chain within the BCH chain and operate just like a basic and fungible SLP token. The biggest distinguishing factor is that the tokens are non-fungible but also harness the ability to be grouped just like type 1 tokens which makes the NFT1 type perfect for digitizing unique assets. A set of clustered non-fungible tokens can spawn ideas like onchain raffles, lotteries, or tickets to an event. Another concept is the creation of distinct collectible tokens and someone could create sets of rare SLP coins. For example, NFT1s can be made to design collectible tokens similar to concepts like the Cryptokitties project built on Ethereum or Rare Pepe cards which use Counterparty. Games could also be created on the Bitcoin Cash blockchain using SLP tokens that work similarly to Spells of Genesis or Mafia Wars. SLP-based blockchain games could be extensible, allowing developers to create NFT1-styled armor, weapons, and vehicles. Even though the SLP tokens would use the same group ID, the value of each NFT1 would be different because they are all unique. The system is far more robust than simply issuing a basic NFT from the same address because the new NFT1 standard is determined by the group ID. Tokenization Concepts Can Bring More Onchain Transactions Tied to the Liquidity From a Secondary Marketplace Token creation has come a long way on the BCH chain and the concept has also evolved on alternative blockchains. With the case of the Simple Ledger Protocol, the project has matured a great deal since it was announced last summer. BCH fans like the protocol, because whenever you issue, transfer or receive SLP tokens, all transferred data is recorded onchain, which in turn can bolster the number of transactions within the BCH network. SLP is permissionless and there’s absolutely no permission required to issue or transfer the tokens. The protocol’s rule set supports a fault-tolerant consensus layer and is very simple to use. This basically means you don’t need to be a master software engineer to create tokens and developers have released intuitive token creation programs within platforms like Electron Cash and Memo.cash. SLP tokens have also received wide support from the BCH ecosystem and are SPV friendly as wallets like Badger, Ifwallet, Crescent Cash, Memo, and Electron Cash help users validate their own transactions. Users can also verify transactions using the site Simpleledger.info or use Bitcoin.com’s BCH Block Explorer. With NFT1 tokens on the horizon, the SLP system is growing further as tokenization is becoming far more robust by allowing for concepts like collectibles, regulated securities, tickets, and controlled whitelists. What do you think about the newly published NFT1 specification? Let us know what you think about this subject in the comments section below. Image credits: Shutterstock, Bitcoincash.org, Simpleledger.info, Simpleledger.cash, Rare Pepe cards, Cryptokitties, Github, and Twitter. How could our Bitcoin Block Explorer tool help you? Use the handy Bitcoin address search bar to track down transactions on both the BCH and BTC blockchain and, for even more industry insights, visit our in-depth Bitcoin Charts. The post SLP Developers Publish Specs for a Unique Type of Non-Fungible Tokens appeared first on Bitcoin News. View the full article

The Indian government official who headed the committee which drafted the bill to ban cryptocurrencies has applied for voluntary retirement after releasing the report and draft bill which the crypto community calls “flawed.” Meanwhile, the government has confirmed that cryptocurrency is currently not prohibited in the country and the recommendations are being examined by relevant authorities. Also read: G20 Leaders Issue Declaration on Crypto Assets – A Look at Their Commitments Crypto Recommendations Heavily Criticized India’s cryptocurrency bill has been drafted by an interministerial committee headed by former Department of Economic Affairs (DEA) Secretary Subhash Chandra Garg. The committee began working on crypto recommendations since November 2017 and finally submitted its report with a draft bill to the Ministry of Finance on July 22. After both the report and the bill were made public, Garg tweeted that his “Committee is very receptive and supportive of distributed ledger technologies [DLTs] … [but] Private cryptocurrencies are of no real value. Rightly banned.” His tweet did not fare well among the Indian crypto community, as comments soon flooded his account in response. Some criticized his definition of private cryptocurrencies. “Sir, BTC is not private, it’s more transparent than your INR,” a comment reads. Others pointed out that crypto is the future in advanced countries and banning it would cost India jobs, investments, talent, and more. The community was also quick to point out that cryptocurrency is not banned in India despite Garg’s tone which could be misconstrued otherwise. A number of people contested the committee’s finding that “There is no underlying intrinsic value of these private cryptocurrencies,” with some arguing that embracing DLT while banning cryptocurrency is ludicrous. News.Bitcoin.com recently reported on the content of this bill including crypto-related prohibitions and offenses. Garg Unexpectedly Quits On July 24, Indian Prime Minister Narendra Modi reshuffled his top-level bureaucrats and appointed Department of Investments and Public Asset Management Secretary Atanu Chakraborty as the new DEA Secretary. Garg has been appointed Secretary of Ministry of Power, primarily responsible for the development of electrical infrastructure across the country. According to local media, he is unhappy with the shift and has subsequently applied for voluntary retirement. He made a final tweet from his DEA Secretary Twitter account on July 25, confirming the story. Garg’s exit has given Indians some hope as they see a possibility that the new DEA Secretary could take a more positive approach to cryptocurrency. Subhash Chandra Garg “Good riddance! for not understanding basic crypto uses and biased report written to [the] government. I hope the next person in office after you is educated enough,” one Twitter user commented. Many others shared this sentiment in their own comments. “With cryptos, you proved your inability to grasp new technology and its adoption,” another declared. Some went as far as accusing Garg of ruining people’s livelihood and fleeing when the situation got out of control as people became upset. “You should be jailed or [an] investigation should be launched against you for the deterioration of the Indian economy,” according to one user. Another wrote: [The] Entire crypto community in India is happy to know that you are quitting. Nearly all the responses to Garg’s final tweet as the DEA Secretary are about crypto, with some people still asking him to change his mind about banning it before he leaves and ensuring its regulation. Crypto Currently Not Banned in India The Indian government has recently confirmed that cryptocurrency is currently not banned in India. Shri Anurag Singh Thakur, Minister of State in the Ministry of Finance, told Rajya Sabha, the upper house of India’s parliament, on July 16 that the government has not prohibited cryptocurrency in the country. Anurag Singh Thakur According to the Ministry of Finance: This [Garg’s committee] report and draft bill will now be examined in consultation with all the concerned departments and regulatory authorities before the government takes a final decision. “After this, if the government decides to go ahead with the ban, this bill will be presented in parliament for debate, and vote. If it’s approved by the majority, it will be sent to the President for his approval as per Article 111,” explained Nischal Shetty, CEO of local crypto exchange Wazirx. “Only after his assent, can a bill become an Act of Parliament.” He further cited one of the recommendations in the report, stating that “It is also possible that the government may establish a standing committee to revisit the issues addressed in the report as and when required.” Bill and Report Dated Feb. 28 Even though the interministerial committee report (IMC) was made public on July 22, it is dated Feb. 28, which some criticize as being too outdated given recent major developments such as the G20 summit and the release of new crypto standards by the Financial Action Task Force (FATF). The FATF guidance was released on June 21. India, along with other G20 nations, has reaffirmed its commitment to applying these standards. Sumit Gupta, CEO of local exchange Coindcx, shared his thoughts with news.Bitcoin.com, stating that “The report cracks fundamentally at places, there were few flaws pointed out in its understanding of DLT/cryptocurrencies and seems dated (5 months old).” The Indian supreme court is expected to address the IMC report in the upcoming hearing of writ petitions against the banking restriction by the central bank. Gupta believes that “This document, which is framed prior to India’s commitment to FATF recommendations, shouldn’t be set as the benchmark for the supreme court hearing,” adding that “Hopefully, the court asks the DEA to review it again and make a fresh recommendation in view of the major global developments since then.” Shetty further asserted: The report has completely ignored the FATF guidelines which clearly states that crypto is not a threat to the global economy, and can be regulated properly. Flawed Crypto Report The Wazirx CEO believes that “everything” is wrong with the committee’s report. “It’s unfair to allow a committee made up of non-technologists to make a decision on an innovative technology still in the nascent stage. It’s shocking to think that people from the industry were never consulted before preparing the report,” he opined. Even the classification of cryptocurrency is flawed, he detailed, adding that the committee recommends a ban on the use of crypto as legal tender or currency without mentioning other possible classifications such as asset, utility, or securities. “It shows that they don’t have enough understanding of crypto,” he remarked. Before publishing the report, the committee claims to have studied how a number of countries treat cryptocurrency. However, Shetty pointed out some inaccuracies. For example, “The report also incorrectly mentions that crypto is banned in China, but in reality, holding crypto is not banned,” he clarified, noting that “recently, bitcoin was legally recognized by a Chinese court, whereby it was concluded that it should now be considered as digital property.” The CEO continued: I hope that the Indian government will keep an open mind, and not take such a regressive decision that will push us decades behind. IMC’s report is flawed, and lacks a fundamental understanding of cryptocurrencies. “The report exhibits that there was no clear consensus in the committee on banning. Interestingly, the committee also understands that considering the nature of technology, banning might not be effective,” Gupta further shared with news.Bitcoin.com. “As DLT is a fast-evolving technology, it’s recommended that a standing committee should discuss some of these points openly and more frequently with industry experts outside the government and come up with the right ways to regulate the industry effectively rather than outrightly banning it. The solution is to educate, regulate and allowing people to innovate.” Meanwhile, there are several ways the community can help the Indian government understand crypto. News.Bitcoin.com previously reported on some ideas for the community to help. Shetty urges all Indians to “Write physical letters to your local MPs, our finance minister, and prime minister explaining why this IMC report is flawed.” Do you think Garg’s voluntary retirement is related to his crypto recommendations? Do you think the Indian government will adopt the bill by Garg’s committee as is? Let us know in the comments section below. Images courtesy of Shutterstock and the Indian government. Did you know you can buy and sell BCH privately using our noncustodial, peer-to-peer Local Bitcoin Cash trading platform? The Local.Bitcoin.com marketplace has thousands of participants from all around the world trading BCH right now. And if you need a Bitcoin wallet to securely store your coins, you can download one from us here. The post Indian Government Official Resigns After Drafting ‘Flawed’ Crypto Bill appeared first on Bitcoin News. View the full article

A New Jersey man has been indicted this week for converting over $2 million to bitcoin and operating a private exchange business not registered with the U.S. Secretary of the Treasury. According to a July 24 press release by the U.S. Attorney’s office, 46-year-old William Green could face up to five years in prison and a $250,000 fine if convicted. Green isn’t alone. With tighter and tighter crypto regulations being imposed worldwide, entrepreneurs, small startups, and even unsuspecting hobbyists are being indicted and threatened by the “crypto cop” dragnet. Also Read: Sorry, I Don’t Want to Pay for More Bombs: Bitcoin as a Hedge Against Funding War No Trade Left Unturned From private trading to business expansion and mining, Bitcoin provides myriad opportunities for entrepreneurs. Unfortunately, state regulators are not always so keen on this progress. Like William Green, Detroit entrepreneurs Sal Mansy and Missouri family man and Bitcoin hobbyist Jason Klein have found out the hard way in recent years. Trading one’s own assets — sometimes even in negligible amounts — can result in a devastating face-off with the jaws of the U.S. justice system. Unlike Green, who is reported to have been dealing in larger sums, Klein was selling small amounts of bitcoin and even reported these transactions on his taxes. He was pressed by undercover federal agents to trade larger and larger amounts and initially refused, noting to them explicitly: I said, ‘I’m not your guy. It’s a hobby for me.’ Missouri tech enthusiast and entrepreneur Jason Klein. Eventually, however, they would succeed in getting their trades, using code words for drugs that Klein knew nothing about, and finally making him feel uncomfortable and avoidant. He did make one final trade however, and that was enough to snag him. In the end he avoided the potential five-year jail sentence and paid a $10,000 fine, plus the $2,122.68 he had earned in fees back to the IRS. The kicker to all this is that, as mentioned above, Klein reported his business in crypto, attaching a detailed statement to his 1040, and traded under the obvious username “jrklein” on localbitcoins.com. As for Mansy, he was a Detroit entrepreneur arguably bringing money into the struggling state of Michigan by way of his business, but ended up getting slapped with a year and a day in prison, a $118,000 fine, and three years of supervised release. Killing ‘Crypto Valley’ Of course individual traders are not the only targets of the crackdown trend. Similar legislation now set in motion in Japan will likely stymie startups in Japan’s “crypto valley,” Shibuya, Tokyo, in 2020. May 31 legislation amending the Financial Instruments and Exchange Act and Payment Services Act will take effect in April next year, classifying any company that even stores digital assets as a “cryptographic asset exchange.” Masahiro Yasu, CEO of Japan’s first blockchain-based social media platform ALIS, lamented the decision in an interview: Smaller companies will need abundant funds if more stringent management systems are required. It may be impossible to maintain existing business unless it changes. With powerful intergovernmental organizations like the Financial Action Task Force (FATF) receiving support from G20 leaders for recommended policy worldwide, it’s no surprise that investigations and specialized government crypto enforcement teams are being formed at an ever-increasing rate. IRS, New York Legislature Prepare for Action New York State Assembly member Clyde Vanel announced on July 22 the appointment of six experts in the field of cryptocurrency to the 13-member New York State Digital Currency Task Force. Newly appointed members include Joseph Lubin of Consensys, Ripple’s Director of Regulatory Relations Ryan Zagone, CEO of Global Blockchain Business Council Sandra Ro, Microsoft’s Yorke Rhodes, Cardozo School of Law professor Aaron Wright, and Yaya J. Fanusie, adjunct fellow at the Foundation for Defense of Democracies. These appointments have come under fire in the New York crypto community due to the heavily government-embedded and decidedly corporate nature of the appointees, as well as a perceived lack of qualification and expertise in the field. Not to mention Joseph Lubin’s current controversial legal entanglements. Meanwhile, the IRS is not only suggesting combing social media for wallet addresses, interrogating friends and family of crypto holders, and subpoenaing companies like Apple and Google for records of crypto wallet downloads – they’re also sternly warning tax evaders about the risks of trying to secretly hold digital funds. Warning Letters Starting in June, the IRS began to issue “soft notices” warning individuals that they may have misreported or neglected to report crypto assets. The soft notices are named such as they ostensibly encourage voluntary cooperation. Ironically, there’s nothing ultimately voluntary about it, as if they are ignored violent enforcement can be brought to bear. One of the notices reads in part: We have information that you have or had one or more accounts containing virtual currency but may not have properly reported your transactions involving virtual currency, which include cryptocurrency and non-crypto virtual currencies. There are chilling undertones, coming from the group that targets small business owners and quiet dads in Missouri. Ironic to some is that the notices come from a government whose history of failing to prosecute large state-embedded banks with ties to drug and weapons trafficking, is indisputable. Hi-Vis Examples Made of Lawbreakers This kind of power brought to bear is not uncommon for big cases involving large sums of money. Nor is it uncommon for the state to deal unusually harsh sentences in order to make an example of offenders. This is admittedly one of the ways government attempts to deter others from trying similar business ventures, and was reportedly mentioned in court documents even in Klein’s small case. In much larger cases, like that of Silk Road founder Ross Ulbricht, it’s argued to be an obvious technique, as the then 30-year-old was sentenced to double life imprisonment plus 40 years without parole, a punishment many murderers and rapists do not even have to face. As for the recently indicted Green, his only crime detailed so far was running a website called “Destination Bitcoin” (which at press time appears to have been removed) and converting customers’ fiat to BTC for a fee. The juggernaut of state alphabet soup involved in the sting is impressive. FBI, IRS, Homeland Security, and Immigration Enforcement teamed up to bring about the case. From small-time hobbyists to big volume private traders, the crackdown on non-state-regulated exchange is ramping up, and it would appear that no one is exempt. How do you feel about the current regulatory climate? Let us know in the comments section below. Images courtesy of Shutterstock, fair use. Are you looking for a secure way to buy Bitcoin online? Start by downloading your free Bitcoin wallet from us and then head over to our Purchase Bitcoin page where you can easily buy BTC and BCH. The post How Government Agencies Make Criminals of Crypto Traders appeared first on Bitcoin News. 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The U.S. Securities and Exchange Commission recently made history when it green-lighted two token offerings under Regulation A+. “This is the first time in U.S. history that a crypto token offering has received SEC qualification,” one of the two qualified issuers proclaims. Also read: G20 Leaders Issue Declaration on Crypto Assets – A Look at Their Commitments Historic Event for Crypto Industry The U.S. Securities and Exchange Commission (SEC) began qualifying token offerings under Regulation A+ (Reg A+) last week. The application by Blockstack PBC was approved on July 10 for Stacks tokens. The other application was approved the following day for Props tokens by Younow, a live streaming app which claims to have 46 million users. Under the U.S. Securities Act of 1933, companies seeking to offer or sell securities to potential investors must either register the offer and sale or qualify for a registration exemption, such as under Regulation A. The Jumpstart Our Business Startups (Jobs) Act, signed into law by former President Barack Obama on April 5, 2012, directed the SEC to amend the Securities Act and expand exemptions provided by Regulation A. The resulting final rules, often referred to as Reg A+, were adopted by the commission on March 25, 2015, and became effective on June 19 of the same year. The exemptions are aimed at facilitating small companies’ access to capital. However, the SEC never approved any token issuers’ Reg A+ applications until now. Blockstack Muneeb Ali, co-founder of decentralized app ecosystem Blockstack and CEO of Blockstack PBC, announced on July 10 that his company’s “upcoming token offering has been qualified by the SEC under Regulation A+,” elaborating: This is the first time in U.S. history that a crypto token offering has received SEC qualification. We believe this is a huge step forward for decentralized applications, internet security, and privacy … It is a truly groundbreaking day for decentralized technology. Ali added that there are currently over 165 applications built on the Blockstack decentralized computing network, including bitcoin-friendly web services such as Dmail, Bitpatron, and Graphite Docs. Blockstack PBC is a technology company that, together with its affiliates, develops an open-source peer-to-peer network using blockchain technologies to build a new network for decentralized applications, the Blockstack network. The Blockstack team worked with the SEC over the past 10 months prior to qualifying for Reg A+, Ali said on Fyiam Tuesday. Under the Reg A+ framework, the company began conducting a $28 million cash offering on July 11. The sale is open to anyone globally “subject to a small number of geographical restrictions,” the CEO confirmed. Prior to obtaining the Reg A+ qualification, only accredited investors could participate in the company’s 2017 offering under Regulation D. According to its offering circular filed with the SEC, Blockstack’s current offering is limited to $50 million in Stacks tokens each year. The circular details that Blockstack currently offers 40 million of these tokens to non-U.S. persons in a private placement exempt from the registration requirements under Regulation S. “We plan to continue our offering under Regulation S concurrently with this offering under Regulation A,” the filing notes. Blockstack also intends to offer its tokens to residents of the State of New York. “We have, however, taken the position that the State of New York’s Bitlicense regulatory framework does not apply to the offer and sale of securities like the Stacks tokens,” the filing explains. Props Project and Younow The day after Blockstack’s announcement, the Props Project announced that it has also been qualified by the SEC to distribute Props tokens under Reg A+. Its SEC filing states that “A Reg A+ filing would enable us to bring Props to our entire community of users.” The team wrote on July 11: We are proud to announce that the Props offering statement on Form 1-A has been qualified by the U.S. Securities and Exchange Commission (SEC), enabling us to grant Props to both accredited and unaccredited Props Network users in the United States and around the world. “This is a landmark moment for our community,” the team continued, adding that Props tokens are now available to registered users of Younow, the first app on the Props Network. According to Younow’s offering circular filed with the SEC on July 12, Props tokens will be used to reward users of the apps for in-app activities. “As a Tier 2 issuer under Regulation A, we will be subject to scaled disclosure and reporting requirements, and we will not be required to make the same level of public reporting required of issuers in traditional public offerings,” the company elaborated. Rules and Eligibility Reg A+ provides for two tiers of offerings. Tier 1 allows securities offerings of up to $20 million in a 12-month period while Tier 2 allows up to $50 million within the same time period. For offerings of up to $20 million, the issuer could elect either tier. Both Blockstack and Younow have opted for Tier 2 offerings. The SEC reiterated: The updated exemption will enable smaller companies to offer and sell up to $50 million of securities in a 12-month period, subject to eligibility, disclosure and reporting requirements. Both tiers are subject to basic requirements. However, Tier 2 issuers have additional rules to follow such as providing audited financial statements, filing annual, semiannual and current event reports, and “A limitation on the amount of securities non-accredited investors can purchase … of no more than 10 percent of the greater of the investor’s annual income or net worth.” Furthermore, issuers in Tier 2 offerings are not required to register or qualify their offerings with state securities regulators. Exemptions under Reg A+ are limited to companies organized in and with their principal place of business in the U.S. or Canada. The exemptions are unavailable for companies that already report to the SEC and certain types of investment companies. Other criteria that could disqualify a company include not having a specific business plan, having been subject to any order of the commission entered within the past five years, or not filing ongoing reports required by the rules during the preceding two years. What do you think of the SEC green-lighting these token offerings? Let us know in the comments section below. Images courtesy of Shutterstock. Are you feeling lucky? Visit our official Bitcoin casino where you can play BCH slots, BCH poker, and many more BCH games. Every game has a progressive Bitcoin Cash jackpot to be won! The post SEC Begins Green-Lighting Token Offerings appeared first on Bitcoin News. View the full article

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release. CROWDLITOKEN AG pioneers and starts distribution of a digital bond – European retail investors benefit as well For the first time in Europe, the Liechtenstein Financial Market Authority (FMA) has approved the offering prospectus for a tokenised real estate investment product. CROWDLITOKEN AG is thus a pioneer for new financial innovations. The Security Token Offering (STO) is now running in European countries. By using blockchain technology, qualified and retail investors are enabled to invest in first-class real estate in Europe. Also the Swiss Financial Market Supervisory Authority (FINMA) has confirmed that no special regulatory approval is needed to market this new class of digital assets in Switzerland. The company CROWDLITOKEN AG, based in Triesen/Liechtenstein, is launching a security token that combines the advantages of direct and indirect real estate investments. CEO Domenic Kurt comments: “This represents an evolution in the world of financial products. New technologies are enabling us to launch a first-class product that not only offers new investment opportunities, but also remedies inefficiencies, cuts costs and safeguards transparency.” In concrete terms, the product is a digital representation of a subordinated bond, whereby both the bond as well as the underlying real estate is digitised via blockchain. The token – named the “CRT” – replicates the income streams and the value changes of the real estate properties. Holders of the tokens can select their properties to invest in and thereby tailor their own portfolio. They will benefit from an attractive yield of 5–7% p.a. The ability to invest small amounts in selected European real estate, the easy tradability on digital stock exchanges (in preparation) and the investment flexibility are key innovative features of this unique real estate investment product. The STO is divided into several phases. The private sale for the first 10 million tokens, which is open to all types of investors, is currently underway with a discount of 25% (equivalent to CHF 0.75 per token, 1 CRT = CHF 1.00). This is followed by the pre-public sale (20%) and public sale (10%). The minimum investment in all these phases is 100 CHF each. CROWDLITOKEN AG targets to raise 100 million tokens through the STO, the funds will be used to build up the real estate portfolio. CROWDLITOKEN’s clear goal is to bring real estate investments into the digital era by using blockchain technology and thus democratise access to the market. For more information, please visit crowdlitoken.com. About CROWDLITOKEN AG CROWDLITOKEN AG is a Liechtenstein-based start-up that provides investors with access to European core real estate via blockchain technology. This is based on real estate-linked security tokens – termed “CRTs” – i.e. a digital representation of a bond that returns a yield equating to 5–7% p.a. CRTs are fully compliant and combine the advantages of direct and indirect real estate investments. Contact Email Address welcome@crowdlitoken.com Supporting Link https://crowdlitoken.com/?utm_medium=article&utm_source=pr&%252520utm_campaign=45mio&utm_content=coinprkit This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release. The post PR: Liechtenstein Financial Market Authority Approves Tokenized Real Estate Investment Product appeared first on Bitcoin News. View the full article

On July 16, U.S. Department of the Treasury Secretary Steven Mnuchin gave a short press briefing discussing cryptocurrencies and the pressing need for regulation. A 28-minute slodge of alphabet agency soup, studded with calculated mentions of “terrorism” nearly every minute, casual observers were left confused. Are we talking about crypto or biological weapons of mass destruction here? Make no mistake, these misguided attacks on Bitcoin will continue as long as a threat is posed to obsolete and violent government economic systems. How they will attack is predictable: using some of the world’s most heinous, emotionally evocative crimes. Like Dogs Howling There’s a funny thing about dogs. When one howls, they all do, even if none of them really knows why. It’s the same with state-sponsored media. The AP releases something, and the top dogs in the news (i.e. those with the most funding and deepest state connections) start howling. Bitcoin is being used for terrorism! Libra will throw the U.S. into financial chaos! Soon, the smaller outlets — the media puppies, let’s call them — jump into the action. Not long after, there is a curious chorus of shrieking howls echoing across the culture, and those not even necessarily agreeing start to buy the story, if almost subconsciously. Uncle Dave, who knows nothing about Bitcoin, will assure you in no uncertain terms at the family barbecue. This Bitcoin stuff is not good for America. Aunt Linda will chime in: “Yes, it’s used for terrorism!” Good luck reasoning with them. After all, howling is a very emotional thing. It’s a visceral expression of existential fear and sadness. Anyone who shouts against the cacophony is likely to be viewed as a threat. Or even an accomplice. It’s an exercise in primitive tribalism, really. A kind of bandwagon propaganda in and of itself. Child Pornography, Drug Trafficking, and Terror With the Jeffrey Epstein case fresh in the media, the child pornography angle of attack will become especially pointed from now on. After all, it’s been used before, repeatedly. According to former president Barack Obama, cryptographic technology raises urgent questions: Then how do we apprehend the child pornographer? How do we solve or disrupt a terrorist plot? What mechanisms do we have available to do even simple things like tax enforcement? It’s ironic that the Obama administration effectively shut down an ICE investigation called Project Flicker which unearthed a festering and systemic plague of child porn in Washington, including 264 DoD officials, and high-level Pentagon officials with top security clearances. Only a few cases were investigated before the matter was swept under the rug. Excerpt from the Project Flicker report archive, in which 264 DoD officials were identified as having subscribed to child porn websites using government email addresses. With 1,700 cases not investigated, and at least one official fleeing after indictment, it looks like the state is actually where illicit secrecy reigns supreme. This is not to mention the 16 NASA employees busted buying pornographic pictures of children as young as three, with personal credit cards and Paypal accounts. Their names of course can’t be released due to “government guidelines.” They could still be working for NASA for all anyone knows. Just last week, in fact, on July 8, a former NASA associate and professor at Portland State University pleaded no contest to “encouraging child sex abuse.” According to prosecutors: A forensic evaluation of Lehman’s cell phone revealed hundreds of child pornography of female victims between the ages of three and 12 being raped and sexually abused If something this heinous at the very top levels of government is ignored by the ilk of Obama, Trump, Mnuchin and their cronies, how far down does the rabbit hole actually go? Of course, child pornography is not the only issue state-sanctioned propaganda leverages against crypto, though it is arguably the most emotionally charged. Drug trafficking and “terrorism” (Mnuchin’s new favorite word) are the two other legs of this shoddily fabricated table to support the state’s “case” against Bitcoin. Who’s Got the Most Dirty Laundry? Source: https://messari.io/c/research/bitcoin-in-the-grand-scheme-of-things According to the United Nations office of Drugs and Crime (UNODC), most launderers are still using the almighty USD and the government regulated banking system to facilitate their activity. In fact, there’s really no contest. The stats find that for each dollar spent in BTC on the darknet, a staggering $800 in USD is criminally laundered. With JP Morgan now embroiled in their cocaine ship scandal — discovered moving over $1.3B in illicit drugs — the recent ramped-up media assault on Bitcoin and Libra is telling. The centralized “drugbanks” of the world continuously evade any real prosecution or scrutiny, while lower level offenders are made glaring examples of. The largest bank in Europe, HSBC, paid out a hefty $1.9B in 2012 to the U.S. Justice Department, avoiding prosecution for assisting Mexican and Colombian drug cartels in laundering $800M in narcotics loot. They were allowed to do so because, according to state officials, the bank’s work is important for the stability of society. Kristi Jacobsen, who directed a related episode of Netflix’s series “Dirty Money” called “Cartel Banks” had this to say: That experience reflected what I think is the American way — to overpunish in terms of sentences for poor people, people of color, people who are powerless. HSBC was underpunished. A kid busted for marijuana possession can’t get away with saying, ‘I haven’t done a good job and I’ll change my behavior,’ as HSBC was allowed to. Financing Terror Is the Name of the Game Money laundering such as that engaged in by HSBC opens channels for massive funding of terrorists and terror cells globally. Many of the alphabet agencies mentioned in Treasury Secretary Mnuchin’s address have been complicit in covert funding of known terrorist groups. However, some of this funding and support is also done right out in the open. In 2017, the United States and Saudi Arabian governments entered into a massive and controversial arms deal. The agreement provided an immediate $110B and $350B over 10 years, to a state that routinely beheads individuals for torture-induced “confessions,” homosexuality, and drug offenses. To many baffled critics, this didn’t seem like something a government concerned with human rights should do. Even now, Saudi forces are directly creating a mass starvation epidemic in Yemen by continuing to drop bombs on the decimated nation. It has everything to do with global military dominance and resources. Nothing to do with the safety and security of human beings. As Trump told NBC News’ Chuck Todd on June 23: I’m not like a fool that says, ‘We don’t want to do business with them.’ And by the way, if they don’t do business with us, you know what they do? They’ll do business with the Russians or with the Chinese. They will buy – we make the best equipment in the world, but they will buy great equipment from Russia and from China One wonders why so much rhetoric is being devoted to talk of crypto regulation. After all, the Saudi government is committing all kinds of human rights abuses, yet the business negotiations take precedent. Idioms about pots and kettles come to mind. Maybe it’s the technological innovation they hate. They Attacked TV and Internet, They’ll Attack Bitcoin “So how come my local mall does more business in an afternoon than the entire Internet handles in a month? Even if there were a trustworthy way to send money over the Internet — which there isn’t — the network is missing a most essential ingredient of capitalism: salespeople.” -Clifford Stoll, Newsweek, 1995 Like all new technological innovations, Bitcoin has come under attack from a rabid and motley crew of luddites, wide-mouthed politicos, and fearful authoritarians resting on the old laurels of a now rotted status quo. While some have legitimate concerns about crypto’s potential uses, monetary surveillance, and a perceived lack of stability, most are simply howling along with the mass media pack, not really knowing why. Surely everyone remembers Noble Prize-winning economist Paul Krugman sounding off in 1998: The growth of the Internet will slow drastically, as the flaw in ‘Metcalfe’s law’ becomes apparent: most people have nothing to say to each other! By 2005, it will become clear that the Internet’s impact on the economy has been no greater than the fax machine’s This guy won a Nobel Prize in economics. This says something about appeals to authority and tradition. Even television was met with scandalized resistance, during its advent. It’s no surprise then that bitcoin has been declared “dead” hundreds of times since its creation. Notably so by the renowned Washington Post in 2016. “R.I.P., Bitcoin,” indeed. Ron Paul Slays Interview, Bitcoin Lives On With all the mealy-mouthed clatter from Trump and Mnuchin’s MSM, former Texas Congressman Ron Paul’s recent CNBC interview is a breath of fresh air. When pressured to give some sort of justification for centralized state regulation, Paul remarked: What the problem is, is you never have a truly free market. There’s always something the government says or does, or introduces a regulation. But they did that with gold, too…so they’ll do that with crypto as well. But no. If the market is allowed to operate, the bad guys get weeded out. Paul went on to encourage multi-currency “true competition” with the U.S. dollar, something that is currently illegal. His view that a truly free market would weed out competition efficiently is supported economically, as market signals reducing demand for bad actors and faulty products or services are not stifled by centralized manipulation. In a pill of truly bitter irony though, subjects to the U.S. dollar worldwide now must pay with their labor, their wealth, and even their lives and the lives of their families, to protect a child porn-proliferating, blood-bathed-terrorist financing, criminal drug syndicate the likes of which the world has never seen. All to the braindead mass media howls of “freedom,” of course. What are your thoughts? Let us know in the comments section below. OP-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article. Images courtesy of Shutterstock, Fair Use Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post How They Will Attack Bitcoin: The Hypocritical Shock Campaign of US Monetary Policy appeared first on Bitcoin News. View the full article

Control of the U.S. dollar and the global financial system that depends on it gives the American government an incredibly powerful tool in shaping international affairs. As such, it is not surprising that its geopolitical rivals around the world will try to exploit the invention of cryptocurrency to take the USD down a peg. The latest example comes from Iran that now wants to create a digital token backed by gold. Also Read: Iranians Defy Warning and Share Pictures of Bitcoin Mining in Mosque Central Bank of Iran Approves Gold Backed Token On Saturday, July 13, Tehran-headquartered Mehr News Agency reported that the country’s first cryptocurrency issued under permission of the Central Bank of Iran (CBI) is set to be unveiled. This was according to an announcement by an official from the Iran Chamber of Commerce, Industries, Mines and Agriculture, a non-profit institution established to facilitate economic growth and development in the country. The official, Shahab Javanmardi, said that the indigenous digital coin will be mined by a consortium of private Iranian IT firms in accordance with the agreement of the CBI and also called on the government to issue regulations for the country’s crypto mining sector. He claimed that “the Iranian cryptocurrency is backed by gold but its function is similar to foreign rivals.” Furthermore, he revealed that “the domestically encrypted money is to ease optimal use of Iranian banks’ frozen resources.” The Shrine of Fatima Masumeh’s gold dome in Qom, Iran Iran has reportedly been preparing to launch its own cryptocurrency for a long while now. Last July state-controlled media also claimed that a large number of homegrown Iranian tech companies were developing such a project in cooperation with the CBI. At the same time, the Iranian government has also made it harder on its own citizens to mine and trade cryptocurrency, with limited success. Tools for Bypassing American Sanctions Cryptocurrencies sanctioned by the government or even directly issued by central banks are not a new concept. Various countries around the world have floated the idea or claimed to have tested it in some capacity. Sweden, for example, is known to be probing the creation of an e-krona, its version of central bank digital currency (CBDC), with the help of private blockchain development companies. However, while the Scandinavian country is considering the move due to its ability to support a transition to a cashless society and other economic factors the Iranian goal for its own crypto is very different. By imposing economic sanctions on other nations the U.S. can deter them from taking actions it disapproves of or even brings an enemy country to its knees without firing a single shot. Iran has been on the receiving end of various American sanctions for decades now and the development of local cryptocurrency needs to be seen in this context. Simply put, the main purpose of any Iranian digital asset will be to bypass the established banking and financial system in order to evade economic sanctions. Petro sign in downtown Caracas, Venezuela The prime example of a cryptocurrency created specifically for bypassing financial sanctions is the Venezuelan petro. Like the purported Iranian token, it is also a resource-backed digital asset, just with mainly oil instead of gold. When president Nicolás Maduro introduced the petro to the public on TV back in December 2017, he stated that it would allow the country to “advance in issues of monetary sovereignty”, and make “new forms of international financing” available to Venezuela. In reality, these promises have failed to materialize so far and many consider the petro nothing more than a scam run by a corrupt government. It was of course also not helped by the U.S., which used all its powers to target the oil-backed coin. American citizens were forbidden from investing in it, and earlier this year the Treasury Department imposed sanctions on a Russian bank which was the primary international institution financing the petro’s launch. Washington Must Lead International Crypto Race All of these new crypto developments are not taken lightly in the U.S. which knows the power it may lose if they actually come to pass. Just a few days ago the Foundation for Defense of Democracies (FDD), a right-wing think tank based in Washington, DC, has published a report warning American policymakers about this threat. The FDD paper details that Russia, Iran, and Venezuela have initiated experiments that their leaders admit are tools to offset U.S. financial coercive power. It claims that the petro serves as a case study for other regimes to learn what not to do and that Russia and Iran are strong allies in a plan to develop a digital currency that could be used for trade outside the SWIFT financial messaging system. The report also focuses on America’s main trade war rival, China. It explains that the country is wary of the ever-present threat of sanctions against its officials. While China is less threatened by sanctions than other adversaries at the moment, the FDD notes that displacing American influence in the global financial system is a Chinese national priority. It warns that Chinese engagement may be the biggest variable in sanctions resistance efforts. “China’s buy-in, if it involved moving its trade onto a blockchain platform outside the conventional system, would be a game-changer.” The think tank finds that technology has created a potential pathway to alternative financial value transfer systems outside of U.S. control. “Washington, therefore, must understand the benefits and threats posed by new financial technologies, maintain the integrity of global finance, and cultivate the expertise and influence to lead in what is becoming an international crypto race.” This may help explain the Trump Administration’s recent interest in cryptocurrency. What do you think about Iran issuing a crypto backed by gold? Share your thoughts in the comments section below. Images courtesy of Shutterstock. Verify and track bitcoin cash transactions on our BCH Block Explorer, the best of its kind anywhere in the world. Also, keep up with your holdings, BCH and other coins, on our market charts at Bitcoin.com Markets, another original and free service from Bitcoin.com. The post Global Crypto War Is Heating up – Iran Next in Line With Its Own Gold-Backed Coin appeared first on Bitcoin News. View the full article

Roughly a year ago, the Simple Ledger Protocol (SLP) debuted on the Bitcoin Cash (BCH) network, giving anyone the ability to mint, store, receive, and send SLP tokens. Since then there’s been a ton of tokens created on the BCH network as the simplicity of the system outpaces tokens built on alternative chains like ERC20s and sending the tokens is far cheaper than most networks as well. The following walkthrough describes how to create SLP tokens and airdrop them to your friends and family in a short space of time. Also read: Bitcoin Cash Update: Multi-Party Escrow, Vitalik Suggests BCH as Data Layer for ETH Creating an SLP Token Using Memo.cash Over the last few months the Simple Ledger Protocol, a tokenization platform built on top of the Bitcoin Cash network, has grown very popular among BCH enthusiasts. The reason for this is due to how easy it is to create an SLP token in a matter of minutes. To show how simple it is to mint, store, and airdrop tokens using the SLP tokenization platform, we’ve created a guide on the two easiest ways to get started. After reading this post and performing a few test runs on either the Memo.cash or Electron Cash applications, you’ll be able to create SLP tokens faster than the Fed prints dollars. One of the quickest ways to mint a token on the BCH network using the SLP platform is through the application Memo.cash. You first need to sign up for Memo.cash and load the account with a small number of satoshis (nickel or dimes’ worth will do) because every action on Memo is basically created with a BCH transaction. If you already have a Memo account you can skip ahead, but if you don’t have an account you can quickly create one here. In order to create an SLP token using Memo.cash you need to register for the platform and fund it with a small fraction of BCH. After the Memo account is created, the top right-hand side of the account page shows a Bitcoin symbol which leads to Memo’s native wallet. To fund the account, choose and copy the BCH address on the right-hand side of the page or simply scan the QR code. After the Memo account is created and funded, you can play around with Memo’s functionality or head directly to the memo.cash/token/create page. Again, your account needs to be funded with a small fraction of BCH in order to create a token using the Memo platform. The “Create Token” window on Memo.cash allows users to customize the SLP token’s attributes. The memo.cash/token/create page shows all the custom fields that can be customized before minting an SLP token. This includes the token’s ticker, name, decimal amount, custom URL, and the initial quantity. After deciding on the specifics of your new token, press “Create” and the new SLP token creation will be broadcast to the BCH network. Memo provides an SLP wallet so after you create a token, it will be stored in your account which can be found in the wallet section. After that step, you can do whatever you want with the new tokens and send them to people on a whim. There is one thing to remember when creating an SLP token on Memo.cash: everything is recorded onchain when you mint a token or send tokens to someone else from your Memo account. Of course, if you wanted you could create a throwaway account on Memo to build an SLP token in a private manner. The only difference between creating a token on Memo.cash, in comparison to creating one using the Electron Cash wallet (described below), is that every token created on Memo is broadcast on your public feed. Designing an SLP Token Using the Electron Cash Light Client Another way to create an SLP token is using the Electron Cash wallet SLP version. You can download the Electron Cash SLP 3.4.14 release here and the wallet is supported by Windows, Mac, and Linux operating systems. Electron Cash SLP allows you to create, mint, burn and send SLP tokens using the light-wallet implementation. After downloading the wallet, the software will ask you to create a new wallet or import existing funds into the platform. If this is your first time, create a new wallet and record the seed phrase on paper as you would normally do when creating a new wallet. After that step, just like Memo, you will need a small fraction of funds to start creating tokens and for sending them as well. So at the top of the Electron Cash wallet, choose one of your BCH addresses and send a fraction of BCH ($0.05-0.10 is plenty) to the address. Once the wallet is funded you can now create a token using the Electron Cash wallet in a matter of minutes. To access the token creation window, press the “Tokens” tab and then press “Create New Token” at the bottom of the window. At the top of the wallet, there’s a tab on the right-hand side that says “Tokens” and you choose this tab to create an SLP token using the wallet. After selecting the “Tokens” tab at the bottom of the wallet, there’s a tab that says “Create New Token” which will bring you to the token creation window. The customizable fields in the creation window include an optional ticker symbol, token name, document URL or email, a document hash, decimal amount, token quantity and the ability to customize the SLP receiving address. The Electron Cash SLP version “Create a Token” window. The Electron Cash wallet has a few more functions as well, including the ability to upload a token document from the wallet itself, and you can also preview the customized settings before broadcasting the token’s genesis transaction to the network. The Electron Cash SLP version can also make it so your token is fixed or you can keep the baton open making minting more tokens possible in the future at any time. If you are comfortable with all the settings you chose, simply press “Create New Token” and Electron Cash will initiate the genesis creation transaction. Creating a token on the SLP tokenization platform is super easy and creating one is much faster than designing an Ethereum-based ERC20 token. There’s a number of wallets that support SLP tokens now as well including Badger Wallet, Electron Cash, Memo, Ifwallet, and Crescent Cash. Users can put even more time into creating a token and design something that might gain value like collectibles or coupon tokens. For instance, I created a set of coins called PKMN S1 which stands for Pokémon Series 1. The Pokémon collection isn’t quite finished, but can be viewed at this address. Pikachu #025 can be seen here on the Simpleledger.info transaction explorer. Each token is nondivisible and there is only one coin for each Pokémon character in the series. Each token is also tied to a unique URL that leads to the official Pokédex. In order to make sure my tokens are unique, I used one address for the genesis creation of PKMN S1. I also signed and verified a message that proves I own the address that is tethered to the Pokémon series. My idea is to one day airdrop these rare Pokémon characters to random people who share their SLP address online. So if you happen to randomly get a Pikachu, Bulbasaur, Charmander, or Squirtle sent to your wallet, you’ll know where it came from. If you want to airdrop your newly created tokens to your friends all you need is their SLP address. BCH Tokenization Using SLP Has Matured a Great Deal With Wallet Support and People Making a Variety of Tokens The BCH tokenization platform the Simple Ledger Protocol (SLP) has been gathering steam lately as many Bitcoin Cash proponents and businesses have been experimenting with the protocol. For instance, the most popular SLP tokens used today include Honk, Spice, the Official SLP Token, Honestcoin, and Dogecash. Then there’s the micronation of Liberland which created Merits which acts as Liberland community funding coin. The city of Dublin, Ohio is in the midst of creating a city-based token using the SLP platform and the coin will be used for city-wide discounts and rewards in Dublin. Wallets that support SLP tokens include Memo.cash, Ifwallet, Electron Cash SLP Version, Badger Wallet and Crescent Cash. The Tokyo-based Alliance Cargo Direct minted the SLP-minted token ACD which is now traded on the Altilly exchange. The ACD token will be used at online and brick-and-mortar merchants from Japan, according to Alliance Cargo Direct, a subsidiary of ANA Holdings (ALNPF). Additionally, on June 12 the digital asset exchange Coinex announced the listing of a new SLP-based stablecoin USDH. Created by the Honestcoin.io team, USDH is fully regulated and backed 1-to-1 for U.S. dollars. Making a token isn’t hard and they are fun to send to friends and people learning about the Bitcoin Cash ecosystem. You can even follow the vast amount of SLP tokens created using the Simpleledger.info transaction explorer or other explorers like Bitcoin.com’s BCH Block Explorer. After experimenting with SLP you’ll be well versed in creating tokens on top of the Bitcoin Cash network in no time and who knows, maybe after airdropping your token it could become used widely or gain monetary value. What do you think about creating SLP tokens using either Memo.cash or the Electron Cash wallet? Let us know what you think about this subject in the comments section below. Disclaimer: This article is for informational purposes only. Readers should do their own due diligence before taking any actions related to the mentioned applications and services. Bitcoin.com and the author are not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Image credits: Shutterstock, Simple Ledger Protocol, Bitcoin.com, Jamie Redman, Memo.cash, the official Pokédex, Badger Wallet, Ifwallet, Crescent Cash, and Electron Cash. Enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely with a credit card. The post How to Create and Airdrop Your Own Token to Your Friends appeared first on Bitcoin News. View the full article

Bitcoin ATMs are not currently governed by EU money laundering regulations, and arrests coordinated by Spanish police and Europol in May are bringing new focus to this loophole. A group of eight Spanish and Latin American individuals have been arrested, along with several of their associates, for using crypto ATMs to fund drug traffickers in Columbia. While large cryptocurrency exchanges worldwide are subject to increasing oversight and regulation, bitcoin ATMs often fall in legal gray areas, prompting debate amongst regulators and crypto users alike. Also read: Crypto Terminals Offer Venezuelans a Bridge to Economic Prosperity Trouble in Vancouver Back in June, police in Canada commented that the convenient crypto exchange hubs effected by bitcoin ATMs are “an ideal money-laundering vehicle.” According to a report from the Vancouver P.D. to the police board in February: The other issue with unregulated Bitcoin ATMs is that they are an ideal money laundering vehicle. Since there are no requirements to register any customer details, it is easy to see how cash can be transferred into Bitcoin and vice versa. A user can also launder an unlimited amount of money using smaller transactions so as not to arouse suspicion, like they would at a regular bank. Now, the mayor himself is pushing for direct bans on the ATMs. This is notable since the first ever bitcoin ATM was installed in a Vancouver coffee shop in 2013. The city is currently host to over 70. Japan’s Clampdown Japan, often known as the world leader for crypto adoption and regulation, has already tackled the issue with a set of iron-fisted legal protocols of its own. Though just years ago Tokyo bitcoiners could easily find multiple ATMs allowing easy exchange from bitcoin to fiat or vice versa, the April 2017 Payment Services Act changed all this. Many small business owners who had previously hosted the machines experimentally, or as a service to growing crypto-savvy customer bases, found themselves slapped with heavy licensing fees and tedious legal restrictions. Areas like the Roppongi district—once a small, but rapidly burgeoning hub of crypto ATM exchange—saw the machines essentially “ripped out” as a result of Japan’s FSA clampdown. In Japan, where digital assets like bitcoin and others are officially recognized as legal currency, this is not surprising. ATMs in other regions, however, continue to afford users relative autonomy and privacy in transaction. A Bitcoin ATM in Los Angeles. United States Regulations Similar in some sense to the regulatory climate in Spain regarding ATMs, America’s licensing requirements for merchants are still in flux. Every state—other than Montana—has a licensing requirement, but not every state agrees on what bitcoin actually is. The cryptocurrency wedges itself as a kind of monkey wrench in the gears of traditional policy, owing to its unique characteristics and technological capabilities. Unlike Japan, it’s still pretty clean and easy to make an ATM exchange in the states. Users don’t need to worry about each and every single transaction’s realized gains or losses for tax purposes. Where in the U.S. bitcoin is treated similar to a stock, and subject to capital gains tax, in Japan every last miniscule transaction must be recorded, and the gains calculated for later reporting. Crypto ATMs Across the Globe There are an estimated 5,000 crypto ATMs globally, servicing locales subject to remarkably diverse regulatory and legal frameworks. How these machines should be managed is fiercely debated, though governing bodies tend to agree on the swelling capacity for use in criminal enterprise. With a forecasted compound annual growth rate of 56.9% from 2019 to 2026, it’s not hard to see why. Companies like the United States’ Genesis Coin, General Bytes in the Czech Republic, and Lamassu in the U.K., are all leading industry players in the field of ATM manufacturing. Even established legacy system ATM manufacturers like Japanese Oki have entered the market in the recent past. Government Reaction to Illegal Use When Indian exchange company Unocoin tried to install India’s first bitcoin ATM in 2018, the company’s co-founder was swiftly arrested by the cyber crime unit of the CCB (Central Crime Branch) which stated: The ATM kiosk installed by Unocoin in Bengaluru’s Kempfort Mall has not taken any permission from the state government and is dealing in cryptocurrency outside the remit of the law. According to Unocoin, they were actually trying to help with legal adoption in the context of regulatory hurdles, as users could make withdrawals and deposits in BTC, but not buy or sell. In fact, at the time of the arrest the ATM was not even operational yet. Regarding the Spanish scandal, EU regulations are now being proposed to take effect in 2020, which would include exchanges and online wallet custodians becoming subject to new anti-money laundering laws. As such, KYC policies and similar measures vetting users and customers are likely to become more widespread in the near future. Privacy Concerns Arguably the most vital function of bitcoin and other cryptos is the ability to effect quick, low fee, and relatively private P2P transactions. Some users are growing uneasy as tighter regulatory measures sap this functionality, and seem to force the asset back into legacy-type, cumbersome processing channels. On the heels of recent criticism from U.S. President Donald Trump, claiming bitcoin facilitates money laundering and criminal activity, some privacy-minded users are beginning to sound off. Bitcoin ATMs have up until now provided—at least in some measure—a relative safe haven for private, autonomous exchange of crypto, as well as direct and simple means for onboarding new users. The Spanish Laundry Cycle Laundering money with these machines, however, is not so simple. The busted scammers in Spain had used false identities to set up two bitcoin ATMs in a Madrid office, claiming to be a center for crypto exchange and remittances. When connected Colombian drug lords sold their product in Europe, the illicit euros were deposited into these ATMs. The crypto was then directed back to the cartels, and finally exchanged for “clean” Colombian pesos. To facilitate this relatively straightforward-sounding loop, however, the group was utilizing a complex and layered network of cartel-connected bank accounts and corporations. Though Spain is home to just around 80 bitcoin ATMs, authorities are nonetheless concerned and are urging swift action in the face of this scheme coming to light. What do you think about bitcoin ATM regulations? Let us know in the comments section below. Image credits: Shutterstock, Twitter Did you know you can verify any unconfirmed Bitcoin transaction with our Bitcoin Block Explorer tool? Simply complete a Bitcoin address search to view it on the blockchain. Plus, visit our Bitcoin Charts to see what’s happening in the industry. The post Spain Thwarts Bitcoin ATM Scam, Prompting Regulatory Debate Worldwide appeared first on Bitcoin News. View the full article