roadrunner

Just recently news.Bitcoin.com reported on the development of a decentralized crowdfunding application powered by the Bitcoin Cash (BCH) network called Lighthouse.cash. The project was first initiated by Mike Hearn years ago, but Lighthouse was abandoned after he left the cryptocurrency community. This week the Lighthouse.cash project developers have officially launched the open source platform for multiple operating systems. Also Read: The Daily: Malta Enacts Crypto Bills, Bermuda Wants New Banks, Dotcom Loses Appeal Lighthouse.cash: Manage Your Own Crowdfunding Campaign Without Any Middle-Men Typically when people crowdfund online they use services like Gofundme, Kickstarter, and Indiegogo. However, the problem with these crowdfunding outlets is that they are centralized, and they can be censored. So back in January of 2015 the Bitcoin developer Mike Hearn designed a BTC-powered application called Lighthouse, but dropped the project when he left due to scaling debate frustrations. Now an anonymous developer has resurrected the project from its ashes and this week the first version of Lighthouse.cash is available to the public. Lighthouse.cash allows users to pledge to many different kinds of projects and users can also create their own funding page in a decentralized manner. “Meet Lighthouse, a bitcoin-cash-powered app to create and manage your own crowdfunding campaign without any middle-men,” explains the Lighthouse development team. Lighthouse provides a wallet and a way to build crowdfunding campaigns without relying on a trusted third party. Lighthouse.cash users can choose between server assisted or fully decentralized settings. The Open Source Project Repository Can be Found at Gitlab The first release of the Lighthouse.cash platform is now available for Mac, Windows, and Linux operating systems. The anonymous developer is being helped by the Cryptonize.it and Cashpay wallet through Toshi’s Fund, explains the latest announcement. The decentralized crowdfunding project Lighthouse.cash and its source code can be found on the Gitlab website. “We decided to maintain the project at Gitlab because Microsoft does not believe it is possible to scale on-chain, it only made sense to us to move this project to a platform that has a better vision,” details the Lighthouse programmers. News.Bitcoin.com testing out the application on Mac OS after launch. Uncensored, Distributed Crowdfunding and More Features to Come News.Bitcoin.com tested the platform first hand, and setting up a crowdfunding project took very little time. At launch, Lighthouse has three projects which include a P2P classified ads platform, Toshis.fund, and Gifter.cash. So far the project features no platform fees to start a crowdfunding project, the system is powered by smart contracts and because Lighthouse uses BCH microtransactions can be pledged with ease. Three initial crowdfunding projects on the Lighthouse.cash platform. “Projects can be distributed however you want. It’s envisioned that galleries will pop up that will host projects and help them reach a wider audience,” says the Lighthouse creators. The first gallery of this kind is going to be on lighthouse.cash In addition to the initial launch features, the project’s roadmap has a lot to offer going forward as well. Besides the typical code polish, the team plans to add a development collaboration tool, mobile phone support, threshold signed software updates, Tor mode, and more features are being developed for the platform. Lastly, the team has released two instructional videos for people who want to either pledge to a project or create a project on Lighthouse.cash which can be found here and here. What do you think about the new Lighthouse.cash project powered by the Bitcoin Cash network? Let us know your thoughts on this subject in the comment section below. Images via Shutterstock, Lighthouse.cash, and Jamie Redman. 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 Satoshi Pulse, another original and free service from Bitcoin.com. The post Decentralized Crowdfunding Platform Lighthouse.cash Launches appeared first on Bitcoin News. View the full article

It’s been a good week for bitcoin (BTC), which is up 8%. But you wouldn’t think so to read the news. Alight on one of several mainstream media (MSM) outlets and you might have learned that bitcoin is crashing and on its way to zero. Taking cheap shots at bitcoin is great for attracting rage clicks. It’s also a great way to look foolish. Also read: Unaware Where Bitcoins Are Mined, RBZ Governor Embraces Blockchain MSM Floats a Sea of FUD Bitcoin has now died 319 times according to Bitcoin Obituaries, but like a B-movie zombie it just won’t stay down. To date, no one has succeeded in administering the fatal double tap, and not for lack of trying. Nine years on, bitcoin is stronger and healthier than ever, with a thriving ecosystem of projects under development, from sidechains to custodial and layer two scaling solutions. Only the brave or the foolish would write off bitcoin in 2018, and yet that’s exactly what so-called experts keep doing. “I thought we’d finally get rid of bitcoin,” grumbled John Crudele in the New York Post. He’s been banging the same drum for four years. “But the fake “currency,” which I like to call bitcon, just won’t fade away…Even at $6,600, bitcoin is still worth 70 percent less than it was at the beginning of the year.” He finished: I use the term “worth” cautiously because bitcoin is really worth nothing, since it’s backed by nothing or no one. It’s a confidence game that has value only because people are convincing other people that it’s worth something. Got it! Ponzi scheme. Confidence game. Fraud. Anyway, bitcoin is headed for a value of zilch. It’s only a matter of when. The Lost Art of Googling Bitcoin isn’t complicated. Merkle roots and block header pruning and UTXOs, sure, that stuff’s too complicated for your average MSM journo. But understanding bitcoin at its most basic level requires nothing more than an ability to Google. Another serving of FUD this week came from a research paper that the Bank of Finland released. The Great Illusion of Cryptocurrencies includes such observations as “cryptocurrencies are not real currencies but instead accounting systems for non-existent assets” and “For all intents and purposes, that ledger is a centralised ledger. The fact that there are multiple synchronised copies of it, distributed across a network, is irrelevant, as each one has the same data.” The UK Media Weigh In Around the same time that the New York Post’s Crudele was foaming over his laptop, British tabloid The Sun was also doling out misinformation. “BUBBLE TROUBLE How Bitcoin bubble burst as cryptocurrency loses 70% value and 800 digital currencies now defunct” screeched the headline. “FEARS are growing that the cyptocurrency [sic] bubble is about to burst after it emerged more than 800 digital coins are now defunct,” read the article, conflating dead shitcoins with BTC for no apparent reason. The Independent is meant to be more reputable than The Sun, but the British media outlet also took aim at bitcoin this week. Like The Sun, its analysis was hopelessly off the mark. “Bitcoin has fallen to its lowest point since November and will probably be totally wiped out” ran the headline by associate editor Hamish McRae, “one of the country’s most respected financial journalists and commentators”. Evidently in the mood for serving some WTF with his FUD, McRae’s byline read: “Will investors’ support for bitcoin continue? The trouble is that we don’t know who owns it. A huge amount of energy has gone into uncovering ownership but most names remain concealed.” Somewhere in the midst of the rambling screed, the journalist then floated the idea that “By looking at IP addresses, it is clear that [bitcoin] ownership is very concentrated.” The Independent’s financial expert ended: “The BIS [Bank for International Settlements] thinks that the decentralised nature of cryptocurrencies is a weakness rather than a strength.” Well fancy that. “My instinct is that these cryptocurrencies will disappear in a puff of smoke. I just hope too many people are not too damaged when it happens.” The thing about predicting bitcoin to go to zero is you can never be proven wrong. You can also never be taken seriously again. What other MSM publications don’t understand bitcoin? Let us know in the comments section below. Images courtesy of Shutterstock. Need to calculate your bitcoin holdings? Check our tools section. The post Predicting Bitcoin to Go to Zero Will Send Your Reputation to Zero appeared first on Bitcoin News. View the full article

Malta has enacted three bills into law on Wednesday that are meant to create a clear regulatory framework that will enable the establishment of cryptocurrency businesses on the island. A number of issues that can have an impact on traders and exchanges pop up when examining the new regulations. A prohibition on insider trading, market manipulation and misleading ads or ICO whitepapers. Also Read: The Daily: Malta Enacts Crypto Bills, Bermuda Wants New Banks, Dotcom Loses Appeal New Definitions The Maltese legislatures have gone out of their way to ensure they won’t use any terms that might appear to put them in odds with current European sentiment. So they don’t refer to Bitcoin, Cryptocurrency, ICO or anything that might ring familiar to anyone with a negative perception of these. Instead they make up new definitions to govern the “Distributed Ledger Technology” industry. “DLT asset” means a virtual token; a virtual financial asset; electronic money; or a financial instrument, that is intrinsically dependent on, or utilises, Distributed Ledger Technology. “DLT exchange” means any trading and, or exchange platform or facility, on which any form of DLT asset may be transacted. A”virtual financial asset” or “VFA” means any form of digital medium recordation that is used as a digital medium of exchange, unit of account, or store of value and that is not – electronic money; a financial instrument; or a virtual token. An “initial VFA offering” means a method of raising funds whereby an issuer is issuing virtual financial assets and is offering them in exchange for funds. “VFA exchange” means a DLT exchange operating on which only virtual financial assets may be transacted. The purpose of the new definitions is to create categories for crypto businesses which want to establish themselves in Malta (and willing to pay fees and hire locals to do so). So expect to soon see some exchanges promoting themselves as a “Certified DLT Exchange” or “Registered VFA Platform” or a variation on these terms based on the new Maltese definitions. Penalties and Liabilities The Maltese law also touches a number of points of contention within the cryptocurrency community. These include the prohibition of insider trading, market manipulation and misleading whitepapers, practices that exchanges and ICOs have been accused of at times. “Insider dealing,” recommending or inducing another person to engage in insider dealing, shall constitute an offence when committed intentionally. It is defined as when a person possesses inside information and uses that information by acquiring or disposing of, for its own account or for the account of a third party, directly or indirectly, virtual financial assets to which that information relates. “Market manipulation,” shall constitute an offence in severe cases or when committed intentionally. It is defined as the manipulation or attempted manipulation of a virtual financial asset or a benchmark through the employment of an abusive strategy that may be carried out by any available means of trading or other means. Regarding civil liability for misstatements in an ICO whitepaper, advertisements and website, the law states that: The issuer shall be liable for damages sustained by a person as a direct consequence of such person having bought virtual financial assets, either as part of an initial VFA offering by such issuer or on a DLT exchange, on the basis of information deemed to be untrue…misleading or otherwise inaccurate or inconsistent, either wilfully or in consequence of gross negligence. And it is also considered an offence. And the law also seems to have serious deterrent against infractions beyond just administrative penalties or losing a license. A person guilty of an offence shall be liable on conviction to a fine of up to fifteen million euro (€15,000,000) or up to three times the profits made or losses avoided by virtue of the offence, whichever is the greater, or to imprisonment for a term not exceeding six years, or both such fine and imprisonment. Can the law really protect against different forms of market abuse? 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 Satoshi Pulse, another original and free service from Bitcoin.com. The post No Insider Trading, Market Manipulation and Misleading Ads – Malta’s New Crypto Law appeared first on Bitcoin News. View the full article

Kenya’s Treasury Secretary has been tasked with the responsibility of investigating the current state of cryptocurrency adoption in the country, which has so far been growing with no regulations. In a couple of weeks, he is to give his report to parliament, advising them how to proceed with regulating cryptocurrencies. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space Decision in Two Weeks Henry Rotich. The Kenyan parliament has reportedly given Treasury Secretary Henry Rotich two weeks to decide whether cryptocurrencies need to be regulated, Business Daily Africa reported on Wednesday. The Finance and National Planning Committee questioned Rotich about the use of bitcoin in the country. Specifically, the committee asked “why the Treasury and the Central Bank of Kenya (CBK) allowed people to venture into the unregulated cryptocurrency space without being licensed to operate and taxed,” the news outlet detailed and quoted the chairman of the committee, Joseph Limo, saying: We are surprised to hear that even the CBK is not aware that there is a lounge at Kenyatta University, an ATM in town, and a hotel in Nyeri which trade in bitcoins. There is a bigger problem in Kenya since people are trading billions in virtual space yet the Treasury has not licensed and taxed it like trade in M-Pesa and bank transactions. When to Start Regulating Rotich admitted that there is a lot of interest in cryptocurrency, adding that he will look into whether there are crypto exchanges operating in the country. So far, “I am not aware of people operating locally…But I will endeavour to find out whether we have local exchangers,” the publication quoted him. After explaining that the central bank will identify any local crypto exchanges and evaluate their risks to see whether regulation is needed now or later, he asserted: The issue of cryptocurrencies is evolving and we can take a position as a country. This is a delicate balance between supporting innovation and killing it. Parliament’s Concerns about Crypto Capital Business also reported on Wednesday that “Molo Constituency Member of Parliament Kimani Kuria wants cryptocurrencies such as bitcoins to be regulated due to risks associated with digital currencies.” Citing that “cryptocurrency transactions are anonymous,” Kuria claims they “can easily be used by corrupt government officials seeking to hide fraudulent money.” He proceeded to describe, “A person who has billions of money acquired wrongly needs only to buy several bitcoins which can store value in a system that lacks centralized outsight. He then could go to another country, recover his money and move on with life.” In answering a question by the Finance and National Planning Committee, Rotich was “hesitant to respond on the government’s capacity to monitor and regulate cryptocurrency transactions conducted within the Kenyan borders,” the news outlet described. However, he elaborated: Unlike other investment avenues, cryptocurrencies are not regulated by any government authorities. Due to their unregulated nature, limited understanding of the cryptocurrency and the influx of companies engaging in it, it is prone to abuse by criminals, terrorists and extortionists who are taking advantage of the unregulated space. What do you think Kenya will do about cryptocurrencies? Let us know in the comments section below. Images courtesy of Shutterstock and Wikipedia. Need to calculate your bitcoin holdings? Check our tools section. The post Kenya Has Two Weeks to Decide Whether to Regulate Cryptocurrencies appeared first on Bitcoin News. View the full article

The governor of the Reserve Bank of Zimbabwe has made several statements about cryptocurrencies that attest to insufficient knowledge of the matter. The central bank, which recently banned financial institutions from working with crypto companies, now wants to study and embrace the blockchain technology that “encompasses all the cryptocurrencies.” Also read: Zimbabwe’s Golix Exchange Enters Kenya, Uganda, South Africa CB Governor Wants to Know Where Bitcoins Come From RBZ, the central bank of troubled Zimbabwe, has initiated studies to investigate the blockchain technology and its possible applications. The major financial institution of the inflation-ridden African country considers blockchain a “new developing global innovation” and is willing to embrace it, according to its governor, John Mangudya. On Wednesday, Mr. Mangudya told guests attending the Alpha Media Holdings Banks and Banking breakfast meeting in Harare that RBZ is moving in that direction, just like many other central banks around the world. “In fact, it is true that for the rest of the world, if you go to countries like United States, China, United Kingdom, and South Africa, it [blockchain] is the issue that is being discussed by the central banks, including the likes of the International Monetary Fund,” he explained. John Mangudya Like many of his colleagues, John Mangudya made it clear that he is not referring to the digital money underpinned by the blockchain technology. “I did not say cryptocurrencies because it is lower than blockchain. Blockchain encompasses all the cryptocurrencies such as bitcoin and we are saying we are putting in motion studies, ways and means of investigating that blockchain technology,” he elaborated, noting the need for a cautious approach but also stressing that RBZ should not be “left out” on these developments. “What we are against as I have always said is to do things which are not regulated because we need to know where these bitcoins are being mined and do want to hunt them. So while we want to embrace things, we need to know where they are coming from. If you embrace mobile banking platforms we know that there is a trust account,” the governor said, quoted by News Day. Mangudya tried to further reason RBZ’s position on cryptocurrencies, demonstrating deficit of basic knowledge of the matter he seems unwilling to understand: “If you are investing in virtual money, we want to know where it is being mined. In fact, cryptocurrencies are just like mobile money because you need a wallet where you deposit the cryptocurrency, but the issue is what is their source and how do they do it?” Zimbabwe’s Crypto Troubles John Mangudya’s comments represent another example of how cryptocurrencies fall victim of arbitrary measures imposed by policy makers and regulators that are not quite qualified. The decisions of the central bank in Harare have had serious implications for Zimbabwe’s nascent crypto sector which was offering a way out of some of the country’s financial woes. In early May, the Reserve Bank of Zimbabwe issued a circular to commercial banks, instructing them to close all accounts of crypto firms within a two-month period and banning crypto trade. With another directive, released on May 17, the central bank ordered the country’s first and leading crypto exchange, Golix, to cease all operations immediately. On the 21st, Golix referred to the High Court requesting the lifting of the ban. The exchange was only granted interim relief, despite previous reports of the ban’s reversal. The lifting of the restrictions on crypto trading by Justice Alphas Chitakunye did not help Golix a lot, as RBZ’s order for banks and financial institutions to quit dealing with crypto companies remained in place. That pushed the company operating the trading platform, Bitfinance, to look around for other markets. In June, reports came out that Golix is entering three other African countries in an attempt to stay afloat in the aftermath of the crypto ban in Zimbabwe. Do you agree that central bankers and policy makers should try to learn more about cryptocurrencies before banning them? Share your toughs on the subject in the comments section below. Images courtesy of Shutterstock, Wikipedia. Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics. The post Unaware Where Bitcoins Are Mined, RBZ Governor Embraces Blockchain appeared first on Bitcoin News. View the full article

In today’s edition of Bitcoin in Brief we cover stories from various corners of the world. In Malta the parliament has enacted three crypto bills into law, in Bermuda the authorities want to create a new type of crypto friendly banks, and in New Zealand Kim Dotcom has lost his extradition appeal. Also Read: Get Yourself a Mustang, Custom Car Builder Now Accepts Bitcoin Malta Enacts Crypto Bills The parliament of Malta has given the final approval on Wednesday evening for three bills meant to create a welcoming regulatory framework for crypto ventures. The bills now enacted into law are the Digital Innovation Authority Act, the Innovative Technological Arrangement and Services Act, and the Virtual Financial Asset Act. The European island-nation has already been able to attract a number of players in the field thanks to the promise of these bills, including the exchanges of Binance, Okex and Bitbay. “Through innovation, Malta is fast becoming a pioneer in economic innovation in order to strengthen its economy through the creation of a new economic niche. This is resulting in other bigger countries following the footsteps that Malta took in this field,” the Digital Economy secretariat stated. #Malta officially the first country worldwide to have holistic legislative framework regulating #blockchain & #DLT technologies. We will be the #global hub for market leaders in this new sector. Now for the implementation of #BlockchainIsland -JM @SilvioSchembri — Joseph Muscat (@JosephMuscat_JM) July 4, 2018 Bermuda Wants New Type of Banks Besides a welcoming government, a jurisdiction must also have a willing banking system, if crypto business are to integrate into the wider economy. In Bermuda, which recently passed an act to regulate and legitimize initial coin offerings (ICOs), banks were obstructing the establishment of new ventures despite the law. So now the local authorities reportedly want to create a new type of banks to overcome this problem. David Burt, Bermuda premier and minister of finance, said that banks “cannot be allowed to frustrate the delivery on our promise of economic growth and success for Bermudians. The fintech industry’s success globally depends on the ability of the businesses operating in this space to enjoy the necessary banking services. In other jurisdictions, banking has been the greatest challenge and for us in Bermuda, it is equally so and therefore it must be resolved.” Kim Dotcom Loses Extradition Appeal Kim Dotcom, the colorful file-sharing and crypto entrepreneur, has lost his latest extradition appeal. The New Zealand’s Court of Appeal has decided today that he can be handed over to the US where he will stand trial for copyright infringement and fraud. American authorities have been after Dotcom since at least 2012, primarily for enabling the loss of more than an estimated $500 million for media copyright holders via Megaupload, a charge he denies. Still, the extradition to the US is not yet a done deal. New Zealand’s Justice Minister Andrew Little has to approve it as well as the court system, and Dotcom’s lawyer responded that “We will seek review with the NZ Supreme Court.” What do you think about today’s news tidbits? 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 Satoshi’s Pulse, another original and free service from Bitcoin.com. The post The Daily: Malta Enacts Crypto Bills, Bermuda Wants New Banks, Dotcom Loses Appeal appeared first on Bitcoin News. View the full article

UK media has reported that 34-year-old Ben Delo, the co-founder of Bitmex, has become the youngest British self-made billionaire. Also Read: Japanese Regulator Responds to Reports of Overhauling Crypto Regulation Bitmex’s Ben Delo is the First British Billionaire From Crypto Industry According to The Sunday Times, Ben Delo’s college yearbook describes him as having been voted the student most like to become a millionaire, and the student second most likely to end up in prison. UK media is now heralding the Bitmex co-founder as the first Briton to become a billionaire through cryptocurrency, and the youngest British self-made billionaire at just 34. After studying computer science and mathematics at Worcester College, Oxford, Ben Delo graduated in 2005 with a first-class degree. Mr. Delo then worked with IBM as a software engineer, before later moving to Hong Kong to work for JP Morgan. Bitmex Rises to Prominence Bitmex was founded by Ben Delo, Samuel Reed, and Arthur Hayes in 2014. Mr. Delo described the intensive work required to launch the exchange, stating “I have had my nose down in a start-up for the past four years. I was doing 18-hour days at one point.” Mr. Delo also recounted living out of spare bedrooms rented through Airbnb due to the company having such little capital in its early days, in addition to he and his wife regularly eating at McDonald’s. Mr. Delo claims to now maintain a frugal lifestyle, inspired by the likes of Warren Buffett and Bill Gates, and to be a regular donor to various charities. Bitmix quickly rose to prominence by offering high leverage of cryptocurrency contracts. Due to the significant leverage offered, the exchange is ranked as having the highest trade volume of all cryptocurrency exchanges on Coinmarketcap. As of this writing, Bitmex boasts an estimated 24-hour trade volume of approximately $2.55 billion – nearly $900 million more than the second largest exchange by 24-hour trade volume, Coinex ($1.66 billion), and over $1.1 billion more than the third largest exchange, Binance ($1.33 billion). Do you think we will soon see more representatives of the cryptocurrency sector achieve billionaire status? Share your thoughts in the comment section below! Images courtesy of Shutterstock, Bitmex At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more. The post Bitmex Co-Founder is the Youngest British Self-Made Billionaire appeared first on Bitcoin News. View the full article

A third lawsuit, alleging securities fraud, was filed last week against Ripple Labs Inc, XRPII LLC, and its CEO Bradley Glaringhouse. In 28 pages, the class action suit attempts to make the case XRP is a security: issued, maintained, and supported by Ripple in clear violation of US regulatory laws. Ripple has worked extremely hard to distance itself from its cryptocurrency, XRP, in hopes of avoiding just this scenario. Also read: Troll Slayer: Derek Magill Defends Peer-to-Peer Electronic Cash Against Defamation Ripple Labs Faces Third Securities Fraud Lawsuit Managing partner of Robbins Arroyo LLP, Brian J. Robbins, filed a class action lawsuit against Ripple Labs Inc, XRPII LLC, and CEO Bradley Glaringhouse on behalf of San Diego college senior David Oconer. Signed by fax late June of this year in the San Mateo, California Superior Court, its more than two dozen pages set about making the case Ripple is in clear violation of the Howey Test. Mr. Oconer, through his legal team, stresses how Ripple fought to manipulate the XRP price, including placing tens of millions XRP tokens into a kind of escrow, creating an arbitrary scarcity. It was also a way to signal to worried longer term investors the company would not dump the lot all at once. Indeed, XRP mooned to many hundreds of percent, the suit alleges, as a result of such moves. It’s the third such lawsuit filed against the company since early May of this year. A common theme between each suit is the claim XRP is a security as defined under US regulatory statute – which insist Ripple Labs is the token’s puppet master indistinguishable from XRP itself. The Oconer version leans heavy on making a case for a Howey Test violation. Ripple isn’t taking any of the suits lightly, hiring two former US Securities and Exchange Commission heavies, Andrew Ceresney and Mary Jo White, as lead counsel. XRP has long been held in a controversial light due in part to its origin story. While leading cryptos were to be mined on chain, ripples appeared ex nihilo with more than 60 percent still held by its parent company. If deemed a security, the company would be most likely ordered to cease all trading, and it’s not unusual to presume holders would be given the chance at refunds. Violations of securities law, what’s more, can also be prosecuted criminally, though those in the know believe it will not get to that stage. Will these lawsuits hurt Ripple? Let us know in the comments section below. Images via the Pixabay, Twitter. 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 Satoshi Pulse, another original and free service from Bitcoin.com. The post Ripple, CEO Face Another Securities Fraud Lawsuit appeared first on Bitcoin News. View the full article

The Florida Chief Financial Officer (CFO), Jimmy Patronis, has issued a statement calling for Florida’s government to create the post of “cryptocurrency chief” to provide greater oversight to the state’s emerging digital currency sector. Also Read: Presidential Decree Sets the Stage for Legalizing Cryptocurrencies in Uzbekistan Florida CFO Advocates Creation of Government Post Overseeing Crypto Jimmy Patronis Jimmy Patronis has issued a statement urging Florida’s lawmakers to create a new governmental post tasked with overseeing the state’s cryptocurrency industry. The “Cryptocurrency Oversight Initiative” has received support from Florida Senate President-Designate Bill Galvano, who stated “ As technology continues to develop, our state needs to be both on the forefront of emerging trends and ahead of the game when it comes to protecting consumers from those who want to scam our residents. I applaud CFO Patronis for putting innovative proposals forward and will work with him on any forthcoming policy changes.” Mr. Patronis said: “Florida can no longer remain on the sidelines when it comes to cryptocurrency. I have directed my office to create a position that will oversee how current securities and insurance laws apply to Initial Coin Offerings (ICOs) and cryptocurrencies as well as shape the future of these regulations in our state.” “ICO and cryptocurrency companies based in Florida will also be required to register with the Office of Financial Regulation (OFR) under the supervision of the cryptocurrency chief. The new position will coordinate the efforts of OFR and Office of Insurance Regulation (OIR) regarding the development of policy, legislation, and regulation,” Mr. Patronis continued. CFO Urges Florida to Develop “Comprehensive” Regulatory Response to Cryptocurrency Mr. Patronis argues that Florida must develop a “comprehensive and balanced” regulatory framework, emphasizing the need to protect citizens from malicious actors seeking to utilize distributed ledger technology. “We cannot allow the cryptocurrency industry to expand in Florida unfettered and unchecked with the potential for so many, including our large population of seniors, to be exploited. By taking an active, comprehensive and balanced approach, our state will provide an appropriate level of scrutiny for emerging digital asset technologies. It is absolutely essential that Florida create safeguards to protect our consumers from fraud,” said Mr. Patronis. “The Alabama Securities Commission recently sent a cease and desist order to Platinum Coin from Miami to prohibit the company from issuing securities within Alabama. Other states have identified and are taking action against bad actors in the cryptocurrency industry. Florida must also protect our residents. […] The establishment of a cryptocurrency chief in the state will help protect Floridians from scams. Understanding the risks and benefits of this emerging industry will benefit Florida consumers. My goal is to keep pace with demand and not deter innovation while monitoring for fraudulent behavior and scams,” he added. Do you think that the creation of state “cryptocurrency chiefs” tasked with overseeing the virtual currency industry would be positive or negative for the virtual currency ecosystem? Share your thoughts in the comments section below! Images courtesy of Shutterstock, Wikipedia At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more. The post Florida CFO Advocates Creation of State “Cryptocurrency Chief” appeared first on Bitcoin News. View the full article

Japan’s top financial regulator has responded to media reports that it is considering overhauling the way cryptocurrency is regulated in the country. The authority has been under fire for the inadequacy of its crypto exchange registration process after it issued business improvement orders to a number of exchanges it previously approved. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space FSA Reportedly Considering New Crypto Law On Tuesday, June 3, the Sankei Shimbun reported that Japan’s top financial regulator, the Financial Services Agency (FSA), is considering overhauling the way cryptocurrency is regulated in the country. The news outlet claims that the FSA is mulling over switching from using the revised fund settlement law to the Financial Instruments and Exchange Act (FIEA), elaborating: Virtual currency is considered a means of settlement, the same as electronic money etc. by the revised fund settlement law, but if it becomes subject to the regulation by the Financial Instruments and Exchange Act, it will be treated as a financial product. The FIEA “obliges securities companies and others to manage customer funds and securities (stocks, etc.) separately from corporate assets,” the publication noted. In addition, companies must establish “a strict investor protection system, such as forbidding insider trading of stocks.” FSA’s Response Impress Corporation subsequently published the FSA’s response to the reports by the Sankei Shimbun and a few other local publications. After contacting the agency to verify the news, the publication quoted the agency conveying, “there was no such fact.” The news outlet added that the FSA regularly holds a research meeting with academics experts, financial practitioners, institutional members, and other industry participants to respond to various problems surrounding the crypto industry. The FSA told the news outlet: If there are such considerations, it will be taken up as an agenda for the study group…the [said] agenda has not been discussed at all in the past 4 meetings…Things that are not on the agenda at all cannot be considered. Speaking to news.Bitcoin.com, Ken Kawai, Partner at law firm Anderson Mori & Tomotsune, also expressed his doubt of the source of the news, commenting: In the long run it may happen but not soon. However, cryptocurrency derivatives including futures, swaps, options and CFD may become regulated under the FIEA relatively earlier. Current Law Inadequate The revised fund settlement law went into effect in Japan in April last year, effectively legalizing cryptocurrency as a means of payments and requires crypto exchanges to register with the FSA. So far, the agency has fully approved 16 crypto exchanges. However, following the hack of Coincheck in January, the agency has tightened its oversight of crypto exchange operators and have found some of the 16 licensed exchanges to have inadequate internal systems. In March, the FSA issued business improvement orders to two of them – Tech Bureau, which operates the Zaif exchange, and GMO Coin. Then on June 22, the agency issued business improvement orders to six licensed exchanges: Bitflyer, Bitpoint Japan, Btcbox, Bitbank, Quoine, and Tech Bureau. Bitflyer is Japan’s largest crypto exchange by volume. Following these orders, the FSA has come under fire for how it approves crypto exchanges. The Sankei Shimbun elaborated, “If the management of the exchange is deteriorated, the mechanism to protect customer assets is insufficient,” adding that by regulating cryptocurrencies with the FIEA as securities, “it will lead to the strengthening of user protection.” Do you think the FSA should change how it regulates cryptocurrency? Let us know in the comments section below. Images courtesy of Shutterstock and the FSA. Need to calculate your bitcoin holdings? Check our tools section. The post Japanese Regulator Responds to Reports of Overhauling Crypto Regulation appeared first on Bitcoin News. View the full article

The executive power in Uzbekistan has advanced towards legalizing cryptocurrencies and implementing blockchain technology in both government and economy. A new decree signed by President Mirziyoyev mandates licensing for trading and other activities related to the circulation of digital coins. The document also calls for regulating crypto mining and smart contracts. Also read: No License Needed to Mine Cryptocurrencies in Ukraine Preparing the Legal Ground for Crypto Activities Following in the footsteps of Belarus, Uzbekistan – another former Soviet republic – has taken steps to legalize its crypto sector as part of the efforts by the government in Tashkent to boost the country’s development through innovation. President Shavkat Mirziyoyev has issued a special decree that will help prepare the legal ground for the implementation of blockchain technologies, the circulation of cryptocurrencies, and the regulation of mining. The document, “On measures for the development of the digital economy in the Republic of Uzbekistan,” was signed on Tuesday and published on July 4. Decree №ПП-3832, which enters into force with its publication, notes that the technologies of blockchain, artificial intelligence, supercomputers, as well as the activities related to crypto assets are some of the main directions for digital development in many countries around the world. Uzbekistan’s head of state has marked several tasks to further the development of the digital economy, the improvement of government systems and the creation of conditions for innovations in his country. Topping Mirziyoyev’s list is the introduction and expansion of activities related to the circulation of crypto assets, mining, smart-contracts, crowdfunding and blockchain technologies that can diversify investment and entrepreneurship. Some of these terms have been given proper definitions. The decree also states that currency operations conducted by corporate entities and natural persons, including non-residents, related to the circulation of crypto assets, are not subject to taxation, and incomes received from such operations are not part of the taxable base. Also, crypto transactions by licensed entities will not be governed by the provisions of the regular currency law, according to the president. Introducing Licensing for Crypto Exchanges Advancing towards legalizing and regulating the sector, the presidential decree mandates the introduction of a licensing regime for activities related to the circulation of crypto assets. Newly created trading platforms will be issued licenses starting from October 1. The government body charged with overseeing licensing is the National Agency for Project Management under the Presidential administration. NAPM and Mininfocom, Uzbekistan’s IT and telecom ministry, have been tasked to develop proposals on creating conditions for the development of the crypto space and present draft amendments regarding the licensing regime within two months. Both institutions should also prepare and offer for discussions a draft law “On digital economy and blockchain technologies” by January 1, 2019. Prime Minister Abdulla Aripov has been charged with overseeing the implementation of the presidential decree. The legal basis will be developed in close interaction between the state and the private sector. As part of the efforts to digitize the country, Uzbekistani authorities also want to organize training courses for blockchain professionals in cooperation with foreign organizations and experts. The Central Asian republic plans to implement blockchain in government procurements, services, registries and data bases, as well as in the corporate management of the large state-controlled enterprises, in clearing operations, payment processing, financing and fundraising. All this is supposed to happen by January 1, 2021. Behind Schedule on Crypto Regulation Uzbekistan is actually falling behind its own schedule for introducing crypto regulations. In another decree issued in February, President Mirziyoyev stated that government institutions should finalize a draft law to legally regulate “electronic money” by September 1, as news.Bitcoin.com reported. Mirziyoyev also ordered respective authorities to set up a special Center for Distributed Ledger Technologies within Uzbekistan’s Mirzo Ulugbek Innovation Center. Opinions on cryptocurrencies in Tashkent, as well as in the neighboring Central Asian capitals, have gradually changed over time and become more positive. Initial warnings about the risks and the possible illicit uses have given way to declarations of support for the implementation of crypto technologies. Kyrgyzstan has announced intentions to introduce crypto payments in public projects, while in Kazakhstan, interest in cryptocurrencies has increased fifteen-fold over the past year. Do you expect Uzbekistan to quickly legalize cryptocurrencies and crypto activities? Tell us in the comments section below. Images courtesy of Shutterstock. Make sure you do not miss any important Bitcoin-related news! Follow our news feed any which way you prefer; via Twitter, Facebook, Telegram, RSS or email (scroll down to the bottom of this page to subscribe). We’ve got daily, weekly and quarterly summaries in newsletter form. Bitcoin never sleeps. Neither do we. The post Presidential Decree Sets the Stage for Legalizing Cryptocurrencies in Uzbekistan appeared first on Bitcoin News. View the full article

Cryptocurrency exchanges in India have one by one announced the shut down of their fiat deposits and withdrawals as banks start closing their accounts per RBI’s crypto banking ban. Meanwhile, they are trying to educate the central bank in hopes of easing the ban. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space RBI Ban Going Ahead The Supreme Court of India heard a petition against the crypto banking ban by the Reserve Bank of India (RBI) on Tuesday, July 3. However, it did not grant a stay on the ban. Instead, this petition, which was filed by the Internet and Mobile Association of India (IAMAI), will be heard along with four other petitions on July 20. RBI issued a circular on April 6 banning all financial institutions under its control from providing services to cryptocurrency exchanges, starting on July 5. Without the stay by the Supreme Court, banks are likely to stop providing their services on July 5 per RBI’s order. Shutting Down Fiat Support One of India’s largest crypto exchanges, Zebpay, announced Wednesday: Today we are disabling the rupee deposit and withdrawal options on the Zebpay app. This is being done in light of the bank account closures as per the RBI guideline…INR deposits and withdrawals have been paused in the Zebpay app until banks allow us again. The exchange recently warned its customers that rupee deposits and withdrawals may become impossible if its bank accounts are disrupted. In the meantime, Zebpay noted that crypto deposits and withdrawals as well as “crypto-rupee and crypto-crypto pair trading” continue to be supported. Another major Indian crypto exchange, Unocoin, issued a statement after the Supreme Court hearing on Tuesday. Reiterating that the court “has refused to hear the plea for interim relief” and that “The [next] hearing is set for the 20th of July,” the exchange wrote: Banking services are expected to be revoked this week…if you are withdrawing or depositing any rupees in Unocoin, there could be a time when we may not honour such requests. A smaller exchange, Coinome, stopped INR deposits at 11:59 PM on July 3. INR withdrawals will be discontinued on July 4 at 11:59 PM, the exchange advised its customers and requested them “not to Panic Sell. Your crypto assets will continue to retain value as per global markets.” Pexo exchange also announced Wednesday that “We are closing the INR deposit and withdrawal request after 6 p.m. today as per the RBI guidelines. Requesting you all to withdraw your funds before the deadline.” Banking Alternative/Extension Wazirx announced at the time of this writing that its “INR deposits & withdrawals are [still] working normally,” adding that “You don’t need to worry about cashing in/out of crypto as Wazirx P2P will help you cash in/out of crypto even after RBI ban.” The exchange recently announced the launch of its P2P trading service which will be live once banks stop providing services to the exchange. Meanwhile, Pocketbits announced that its “INR deposits might not be available after 5th of July, but INR withdrawals will be available even after that. Users can Withdraw their INR anytime. Crypto Withdrawals and Deposits are always available without any restrictions.” The exchange clarified: Our current banks have given us an extension to disburse all the funds, this does not mean we will have functioning bank accounts indefinitely. We will notify our users days in advance before the withdrawals are completely stopped. Koinok, on the other hand, claimed at the time of this writing that “even after July 5, INR withdrawals will be available on Koinok and you will be able to withdraw your INR funds anytime.” Exchanges Trying to Educate RBI At the IAMAI petition hearing on Tuesday, the association submitted “a representation to the RBI which was a detailed document explaining blockchain, cryptos and how they function,” Wazirx’s founder and CEO, Nischal Shetty, told news.Bitcoin.com. According to CNBC-Awaaz, the Supreme Court sent a notice to RBI during the hearing, asking the central bank to respond within 7 days. Shetty elaborated, “if the RBI gets a deep understanding of blockchain and crypto then they may go easy on the ban and think about regulations.” Unocoin emphasized on Wednesday: We would like to let you know that this [RBI’s banking ban] is not a ban on cryptoassets and a policy in this regard is expected in the near future. Disclaimer: Bitcoin.com does not endorse or support claims made by exchanges in this article. None of the information in this article is intended as investment advice, as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any products or companies. 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 this article. What do you think of RBI’s action and how crypto exchanges are responding? Let us know in the comments section below. Images courtesy of Shutterstock, Unocoin, and Zebpay. Need to calculate your bitcoin holdings? Check our tools section. The post Indian Crypto Exchanges Drop Fiat Support as Banks Close Their Accounts per RBI Ban appeared first on Bitcoin News. View the full article

Following the actions of competing communications apps like Telegram, Line and Kik, the latest hoping to enter the cryptosphere is Viber. The firm is considering support for a native token that will be launched by its parent company, Rakuten Coin. Also Read: Israel Tax Authority Convinces Local Exchange to Report Big Traders Viber Rakuten Coin Viber is an instant messaging and voice over IP app originally developed in Israel. It was bought by the Japanese online giant Rakuten in 2014 for $900 million, and now has over a billion registered users worldwide. Its parent company, which announced plans to launch ‘Rakuten Coin’ based on its existing loyalty program back in February, is reportedly now studying Russian law in order to launch the token via Viber in Russia in 2019. “Our mother company is creating Rakuten Coin: cryptocurrency, which is supported by the entire Rakuten ecosystem,” Viber Chief Executive Officer Djamel Agaoua told reporters on Tuesday according to the Russian news agency Tass. “This Rakuten Coin will be tradeable in Viber,” and the token will appear in the Viber wallet, he noted. “Very soon you’ll be able to send some Rakuten Coins and to trade Rakuten Coins against rubles, dollars and euros,” with possible transfers to bank accounts depending on Russian law. Messaging Apps Love Cryptocurrencies and Tokens Leading communications apps have been part of the cryptocurrency ecosystem for a while now. Back in 2017 Kik Messenger, which has over 300 million registered users and is mostly popular with teenagers, raised nearly $100 million from more than 10,000 ICO investors in 117 countries for its Kin token. Telegram raised a whopping $1.7 billion earlier this year from a small group investors just in anticipation of an ICO that wasn’t eventually needed. And just last week it was reported that the operator of Line, Japan’s most popular chat app with approximately 200 million users worldwide, has confirmed the upcoming launch of its own cryptocurrency exchange called Bitbox. The new platform will list more than 30 of the most popular cryptocurrencies, offering “low trading fees”. Supporting 15 languages, the new exchange will launch globally, except for two countries. Should every app has its own token or converging on a single cryptocurrency is best? 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 Satoshi’s Pulse, another original and free service from Bitcoin.com. The post Viber Is Latest Communications App Considering Support for a Native Token appeared first on Bitcoin News. View the full article

Forget about a Lambo and get yourself a Mustang. An American custom car builder now accepts payments for its built-to-order and officially licensed vehicles in bitcoin and additional cryptocurrencies, including BCH, BTC, LTC, ETH and more. Also Read: Decentral Launches Its New Crypto Wallet Jaxx Liberty in Beta Made in America Muscle Car Classic Recreations is a Yukon, Oklahoma based custom car builder licensed by Ford Motor Company and Shelby American to fabricate licensed Ford Mustang restorations and continuation cars. It recently announced that, in an effort to reach a more global client base, it will start accepting payments for its vehicles in a variety of cryptocurrencies, including but not limited to, BCH, BTC, LTC, ETH and MTC. “My entire life I have had a strong fascination for technology and its evolution,” stated Jason Engel, owner of Classic Recreations. “Cryptocurrencies have come a long way and continue to solidify themselves as a legitimate currency on the global market. The true beauty of accepting cryptocurrency is the universal aspect of it which allows Classic Recreations to connect with consumers from anywhere in the world.” The company has been in business for more than fifteen years and each of its built-to-order vehicles takes approximately four months (nearly 2,500 man hours). Additionally, all of its high-performance vehicles are handcrafted and built in-house, according to the company’s website. It’s Not Just Whales Buying Cars with Bitcoin Buying cars has long been a common way of exhibiting wealth among the luckier members of the bitcoin community, showing off Teslas, Lamborghinis or even a whole fleet of F1 supercars as a testament to getting into the market as an early adopter. As such, luxury car dealerships have sprung up that cater to this segment specifically. But it isn’t just whales that are buying cars with bitcoin. In Japan, where bitcoin payments are perhaps more widespread and accepted than anywhere else in the world thanks to welcoming regulations, even used cars are being sold for bitcoin. Back in November 2017 it was reported that a couple of Japanese automotive groups, including one of the largest in the country, have begun to enable bitcoin payments at their dealerships across the country. If you had the funds, would you buy a Lambo, a Mustang or just hodl? 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 Satoshi’s Pulse, another original and free service from Bitcoin.com. The post Get Yourself a Mustang, American Custom Car Builder Now Accepts Bitcoin appeared first on Bitcoin News. View the full article

Tax agencies around the world keep applying pressure on bitcoin and crypto companies to make their operations transparent to them. The latest example comes from Israel, where a local exchange with over 50,000 clients has been convinced to report its bigger traders to the national tax authority. Also Read: Decentral Launches Its New Crypto Wallet Jaxx Liberty in Beta Bits of Gold to Report to Tax Authority Tel Aviv based cryptocurrency exchange Bits of Gold has agreed to report on its ‘heavy’ users to the Israel Tax Authority, according to media reports from the country. The company will pass on information to the tax authority on anyone who traders a total of $50,000 or more over a twelve-month period. It agreed to this after the authority carried out an onsite inspection of its operations at the exchange’s offices, targeting information on its bigger clients. Exchanges operating in the country already have to report big trades to the Israel Money Laundering and Terror Financing Prohibition Authority, but that information doesn’t get to the tax authority easily as there are laws in place to prevent this to protect citizens’ privacy. Moreover, the Israel Tax Authority does not have the legal right to compel companies to report on their clients without their agreement and court precedents back this up, according to local newspaper Calcalist. Putting the Squeeze on More Investors Furthermore, according to the reports, this agreement with Bits of Gold is a sign of things to come as the Israeli tax authority now plans to approach more local companies and exchanges trying to reach similar arrangements. And this is just the latest initiative by the Israel Tax Authority in the crypto field. Back in May it was reported that regional branches have sent out letters to those they suspect are trading bitcoin, demanding that the recipients divulge all of their involvement in the cryptocurrency market including all past transaction history and current holdings. People were being asked to list all exchange accounts and wallets they ever had and report their trade earnings. Additionally, the agency demands that people will reveal if they are engaged in mining. Should crypto exchanges agree to report on their clients if they are not compelled by law? 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 Satoshi’s Pulse, another original and free service from Bitcoin.com. The post Israel Tax Authority Convinces Local Exchange to Report Big Traders appeared first on Bitcoin News. View the full article

Some potential investors find the process of acquiring cryptocurrencies rather complicated, according to a new survey conducted among US residents. Despite that finding, and other obstacles, another study confirms the recently reported increase in capital raised through coin offerings this year. Also in today’s Bitcoin in Brief, the Swiss city of Zug concludes successfully its experimental vote on blockchain. Also read: Coinbase Custody Opens, Hitbtc Hits Back at McAfee, BTCC Relaunches Purchasing Process Deemed a Hurdle for New Crypto Investors The complicated process of purchasing cryptocurrencies is the biggest obstacle for new investors entering the crypto space, according to a recently released study. The authors polled 1,000 US residents to profile crypto holders and better understand how they are using their digital coins. The poll also attempted to gauge the cultural perceptions surrounding cryptocurrency ownership. According to the compiled data, almost 40 percent of millennials have confirmed owning cryptocurrency, 48 percent of males and 26 percent among females. At the same time, 24 percent of polled Generation X Americans and 15 percent of Baby Boomers also admitted owning bitcoin or any of its alternatives. The survey, conducted by Creditcoin, made other interesting findings regarding a possible connection between cryptocurrencies and personal relationships. Three-quarters of the questioned stated they would be more likely to date someone who is knowledgeable about cryptocurrency. Many of them, however, remain reserved about dating someone who is obsessed with cryptos. The majority said they would date a divorced person rather than someone who keeps all their savings in cryptocurrency. Nevertheless, over half of the respondents believe they would have about 10 percent of their savings in cryptocurrency in the next decade. When asked what they would do if given $10,000, almost 40 percent said they would buy cryptocurrency than invest in a down payment on a house, 33 percent, or a car – 28 percent. Investors Still Bullish on ICOs, Despite Issues Despite regulatory pressures and other issues like bad publicity due to fraudulent or unsuccessful projects, Initial Coin Offerings (ICOs) have raised $11.8 billion through May 2018, according to a new analysis released by The Wall Street Journal. The estimate covers nearly 900 token sales listed on ICObench.com. The authors point out that this year’s total is more than double the amount collected by coin offerings for the whole 2017, ~$5.5 billion. The researchers claim that the problems around ICOs have not deterred big tech-oriented investors. Some of the notable token sales this year include the coin offering conducted by the company operating the popular messaging service Telegram, which raised $1.7 billion USD, and that of Block.one, which attracted an estimated $4 billion for its EOS network in June. The study found that the number of ICOs has increased as well, with around 490 token sales raising an average of $24 million in the first five months of 2018, compared to $14 million collected on average by 300 startups in the last five months of 2017. According to another report, authored by the Swiss Crypto Valley Association (CVA) and PwC’s consulting division, Strategy&, the capital raised through ICOs has reached $13.7 billion USD in the first five months of this year. Both studies conclude that the US remains a major destination for initial coin offerings, while countries like Switzerland are catching up. Zug Concludes ‘Successful’ Test Blockchain Vote Authorities in the city of Zug, home of the Swiss Crypto Valley, announced that the country’s first experimental municipal blockchain-based vote has been conducted successfully. The trial started on June 25 and was completed on July 2. Voters were able to participate via an app they had to download and install on their mobile devices. The small scale consultative vote also utilized the city’s eID system introduced in November. The residents of Zug were asked if they were in favor of setting alight fireworks during the annual Lakeside Festival, and whether they thought digital IDs should be used to borrow books, pay parking fees, and for identification on regular referendums. The city has been issuing its residents with digital identity documents since the winter, and is currently examining various possible applications for the blockchain technology. What sets the Zug referendum apart is that the voting did not take place via a single central server, but was distributed using blockchain across many computers, Swissinfo reports. “The premiere was a success”, Dieter Müller, Head of Communications for the city, told the Swiss News Agency. He added that the technical details of the test will be evaluated over the coming months to estimate the level of protection of privacy and voting secrecy. Authorities will also focus on ensuring that voting results are verifiable and immutable. Israeli Startup Launches Vegancoin While establishing a chain of vegan restaurants in the US, American entrepreneur Isaac Thomas and his Israeli partners, Nati Giat, Shenor Shapira, and Yossi Raybi, realized that the millions of vegans and vegetarians around the world need more than that. Their Tel Aviv based company, Vegannation, is now building a global vegan-friendly decentralized community platform. The idea behind the project is to create an ecosystem where vegans can find food products, other vegan commerce and share content like recipes, news and blogs in one place, The Jerusalem Post reports. The platform will have its own crypto, Vegancoin, and joining members will be provided with a Vegannation digital wallet. According to the entrepreneurs, all affiliated businesses are “vegan and cruelty-free.” “We are moving toward a world where people can see everything and can be responsible for the way they consume. So bringing cryptocurrency to the vegan community brings it full circle,” said Vegannation CEO and co-founder Isaac Thomas. In his words, veganism, cryptocurrency and blockchain go hand in hand toward a world of transparency and awareness. What are your thoughts on today’s news tidbits in Bitcoin in Brief? Let us know in the comments section below. Images courtesy of Shutterstock. Bitcoin News is growing fast. To reach our global audience, send us a news tip or submit a press release. Let’s work together to help inform the citizens of Earth (and beyond) about this new, important and amazing information network that is Bitcoin. The post The Daily: Complicated Crypto Purchasing Puts Off US Investors, Analysis Confirms – ICOs Spike appeared first on Bitcoin News. View the full article

Syscoin has been hit by an unusual hack that has manipulated the coin’s total supply. The attackers then sent the fraudulently generated coins to Binance and sold them, pushing the price of 1 SYS to as high as 96 BTC. The BTC they received was then withdrawn, prompting Binance to temporarily cease trading and to reset all APIs, which are believed to have facilitated the attack. Also read: EU Report Advises Regulators Not to Ban or Ignore Cryptocurrencies Syscoin Gets Pumped, Binance Gets Rekt 96 BTC ($600,000) is a lot of money to pay for anything, not least a single altcoin that normally retails for a few cents. The first signs that something was astir emerged on Tuesday evening (EST) when Syscoin noted that it had detected unusual activity on its blockchain. It was initially suggested that a block was mined that somehow created 1 billion new SYS. Given that the total supply is set at 888 million, this ought to have been impossible. It is now understood, however, that the attackers were simply moving the same 40 million SYS around, as reported by a member of the Syscoin team. As such, the attack was not a hack in the conventional sense of the word, even if the end result was the same. In recent weeks, a number of blockchains have been compromised before the funds were sent to Binance to launder, but 51% attacks were usually used, as was the case with Zencash. Intriguingly, the Syscoin hack came just one day after blockchain security protocol Blue claimed that half of the top 50 cryptocurrencies were vulnerable to “destructive flaws”. It promised to make the information public, before claiming that it had delayed the release to allow exchanges to make security preparations. Binance Cancels All APIs When cryptocurrency is stolen or otherwise appropriated through mischievous means, Binance has become the preferred destination for culprits seeking to cash out. That’s because it’s one of the few high liquidity exchanges with no KYC, making it easy to withdraw coins anonymously. It is widely assumed that Binance will soon enforce KYC, not least to protect itself from attacks such as these. It has been claimed that as much as $50 million of BTC was withdrawn from Binance, but these reports are as yet unverified. Watch what happened with $SYS on the 1-minute chart. pic.twitter.com/AZEQKxlNk3 — CryptoTutor (@CryptoTutor) July 3, 2018 Binance, for its part, has responded promptly to the hack, and communicated regularly with its users, as has been its trademark during times of crisis. Customers of the exchange woke up to the following email: Binance CEO CZ promised a full post-mortem after the exchange re-enabled trading on Wednesday morning. In an incident recap, Binance has promised to rollback irregular trades and offer zero-fee trading to irregular trading. The exchange tweeted the news accompanied by the #SAFU hashtag, in reference to a rising crypto meme spawned by a previous CZ typo in which he assured users that “funds are safu”. In March, Binance was hit by a similar API-based attack, on that occasion using Viacoin. Using compromised APIs, the attackers set ridiculously high sell orders on the victims’ accounts, dump their illicitly obtained crypto on them and then cash out. Decentraland’s MANA cryptocurrency also soared dramatically on Binance in a move that’s believed to be linked to the Syscoin API attack. Anatomy of a Hack Telegram channel Whatblock has published what appears to be a fair summation of the Syscoin hack, writing: 1. [Hacker] spent a very long time collecting API keys through malware. 2. Look for a REALLY low liquidity shitcoin with an extremely thin order book on the ask side and find SYScoin. 3. Mine a lot of SYS coins and Take over SYS mining power to prevent rollback of the chain. 4. Get full access to an account on Binance that has a very high trade volume and regularly deposited and withdrew extremely large amounts of BTC (To avoid suspicion). 5. Send SYS (mined earlier) to this Binance account. 6. Place ask orders of SYScoin at VERY high rates at the very top of this thin order book. 7. Use BTC of Binance users that use API to buy all SYS in the orderbook. 8. Withdrew 1000 BTC in 7 different withdrawals all to the same BTC address. While Binance has earned plaudits for its prompt response to suspicious trades, it is evident that it will remain a prime target to attackers so long as they are able to deposit and withdraw crypto with anonymity and impunity. Do you think API-based attacks such as these are likely to happen again? What can exchanges like Binance do to mitigate the threat? Let us know in the comments section below. Images courtesy of Shutterstock, Twitter, and Binance. Need to calculate your bitcoin holdings? Check our tools section. The post Syscoin Hack Disrupts Binance Prompting Temporary Shutdown appeared first on Bitcoin News. View the full article

Another month, another almighty congestion on the Ethereum network. Gas prices have soared this week, passing 500 gwai at one stage, before settling on a still-pretty-substantial 56 gwai. As a result, the average transaction cost is $0.49, making it more expensive to send crypto on Ethereum than on other major blockchains such as BTC or BCH. A rogue app, as usual, seems to have been the culprit. Also read: Paul Krugman Trolls Ripple, Accidentally Making a Case for Bitcoin Cash Ethereum Backlog Causes a Network Slowdown Anyone trying to deposit or withdraw ERC20 tokens from a cryptocurrency exchange yesterday will likely have encountered a major delay. Gas prices have been unusually high for days, requiring an average of 50 gwai to push a transaction through. An application called Fcoin GPM Listing is being blamed. It forces all candidate projects to use massive gas fees to airdrop to FCoin accounts to create a ‘deposit vote number’. Each day the top five projects are listed on that exchange based on the cumulative deposit number, before the cycle repeats. The site, which appears to originate in China, is a new addition to the cryptocurrency scene, and an unwelcome one for anyone who’s been trying to use the Ethereum network. This isn’t the first time Ethereum has been crippled by a single application of course; previous culprits have included Crypto Kitties and a group of shrimp farming games. Eth Gas Station estimated prices of up to 500 gwei at one stage on Monday, and yesterday a record 44.4 billion gas was used on the network. It’s a Gas, Gas, Gas World Popular Ethereum client-side interface Mycrypto launched into a Twitter rant on Tuesday about the selfishness of Fcoin GPM Listing, accusing it of using a “mind-numbingly despicable voting mechanism that, quite literally, incentivizes Sybil attacks”. One of the worst, but less documented, side-effects of blockchains being commandeered by selfish apps is that they deter people from transacting on-chain. When a trader fears they won’t be able to move tokens from their hardware wallet in time to capitalize on a market movement, they will be more inclined to leave their coins on a centralized exchange, thereby losing their financial sovereignty. In addition to harebrained schemes such as that conceived by the dubious Fcoin GPM Listing, certain Ethereum smart contracts are badly designed so as to use more gas than is necessary. To incentivize more efficient gas usage, a Solidity Gas Golfing Competition was recently held “to produce the most gas-efficient code…for a series of straightforward challenges”. Optimizing gas usage is something that all Ethereum developers can aid. But they’re powerless, like the rest of the community, to halt spammy or scammy apps that make unnecessary use of the blockchain, impeding service for everyone. Have you suffered from slow and expensive Ethereum transactions this week? Let us know in the comments section below. Images courtesy of Shutterstock, Eth Gas Station, and Twitter. Need to calculate your bitcoin holdings? Check our tools section. The post Rogue App Wreaks Havoc –Transaction Costs Soar as the Ethereum Network Slows 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 does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release. ICO is a concept that elicits strong reactions form people across the board. After the 2017 ICO craze in which projects with little more than a concept on a white paper were getting millions in funding, this innovative crowdfunding mechanism has left a bad taste in the mouths of countless people around the globe. A lack of investor discipline and hype on one hand, and a tendency to over-promise and under-deliver on the other hand, led to a situation in which funds were wasted. This situation created a void in the market that Vertex seeks to fill with the first ICO aftermarket. The Concept Behind Vertex The concept that Vertex is promoting is quite simple. To avoid misunderstandings in the market on every side, reduce the number of projects that are not viable and discard scams outright, there must be a platform that can perform extreme vetting of these projects before they get funding. Vertex will do exactly that, as it builds on its extreme vetting mechanism to deploy a fully functional ICO aftermarket. This is how it will work: A team of world renowned investors, international business leaders and venture capitalists will vet projects based on their experience and a carefully crafted methodology. After the vetting process is over, only about 3% of the projects will be eligible for funding. At this point, Vertex will decide which projects to buy into. The tokens that Vertex acquires will be sold through its platform, the cornerstone of the Vertex ICO aftermarket. Users on this platform will be able to acquire tokens from vetted projects and they will have access to the analysis that Vertex experts have done on each project. Every user will have a fair chance of buying any token sold on the platform. Vertex will make sure that there is no artificial scarcity. The Importance of the VTEX Token To purchase ICO tokens on the Vertex platform, users will have to use the VTEX token. Vertex will also use VTEX to buy at least part of the tokens from vetted ICOs. The VTEX token will underpin this ecosystem, connecting ICOs and users through the Vertex vetting mechanism and its platform. This will allow everyone involved to derive various benefits. The Benefits of the Vertex Platform Users and ICOs will benefit from the deployment of the platform, the token and the vetting mechanism. Vertex will create a win-win situation for everyone involved, by delivering on the following: Funding for vetted ICOs to get their projects started. Access to an ever-growing pool of users that have gone through the KYC process, which will become the client base for vetted ICOs. Tokens from ICO projects that have the highest chance of succeeding. Guaranteed access to tokens that would otherwise not be available in the open market. A decentralized system that allows users to keep their funds on their own wallets, which keeps hackers away from the platform. Vertex Sale Anyone who is interested in participating and gaining access to the world’s first ICO aftermarket, will be able to do so through Vertex’s initial token sale. The sale will run from August 27th, 2018 and will end on December 15th, 2018. Anyone interested in the Vertex project, can check out the website [https://vertex.market] and other material. The Vertex team is accessible and always open to questions from the public, so just go ahead, check this promising project out and become part of the first ICO aftermarket that will change the way this new crowdfunding mechanism is used. You can find out more by following Vertex on Twitter, Facebook and YouTube. Join the Vertex Telegram group and ask our team members about the project directly. You can also contact us directly at info@vertex.market Press Contact Email Address marketing@vertex.market Supporting Link https://vertex.market 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: Vertex Launches ICO Aftermarket appeared first on Bitcoin News. View the full article

A recent report published by the European Parliament advises policymakers and regulators not to ignore cryptocurrencies or attempt to ban them. It discusses how crypto should be treated, their taxation, as well as their potential impact on financial systems and central banks’ monopolies on money issuance. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space European Parliament’s In-Depth Analysis The European Parliament last week published an in-depth analysis entitled “Virtual currencies and central banks monetary policy: challenges ahead.” The 33-page document was provided by Policy Department A at the request of the Economic and Monetary Affairs Committee. It is co-authored by Marek Dabrowski and Lukasz Janikowski. The report acknowledges that virtual currencies (VCs) “are often referred to as ‘cryptocurrencies’ because the majority of VCs rely extensively on use of cryptographic algorithms.” However, the authors of the paper wrote, “in our opinion, this term is misleading and may have a pejorative meaning, so we will not use it in our paper.” The document specifically defines VCs as private money that is usually decentralized, exists exclusively in digital form, most are based on blockchain technology, and most have global character meaning they work across national borders. The report reads: Policy makers and regulators should not ignore VCs, nor should they attempt to ban them. Both extreme approaches are incorrect. The authors further asserted, “VCs should be treated by regulators as any other financial instrument, proportionally to their market importance, complexity, and associated risks…Given their global, trans-border character, it is recommended to harmonize such regulations across jurisdictions.” In addition, they recommend that investment in cryptocurrencies be taxed similarly to investment in other financial assets. Impact on Financial Systems The report discusses the potential impact of cryptocurrencies on financial systems as well as whether they can break central banks’ monopolies on money issuance. After analyzing the impact of cryptocurrencies on monetary policy, the authors concluded that it seems unlikely that cryptocurrency has the potential to compete with the sovereign currencies issued by central banks, “despite the relative market success of bitcoin and the chances for similar successes with its followers.” Citing that the total market capitalization of all cryptocurrencies in April was below US$300 billion while broad money (M3) in the US approached US$14 trillion at the end of 2017, the report states: The monetary dominance of major central banks and major currencies seems to remain unchallenged in the near future. Walking a Thin Line Nonetheless, the authors believe that “the prospects may look different in smaller monetary jurisdictions, especially in countries where the sovereign currency remains inconvertible or does not enjoy the trust of economic agents due to its poor record of stability or due to political and economic uncertainty.” The report also finds that the demand for cryptocurrencies is not going away and that it should be taken seriously by all readers. “The economists who attempt to dismiss the justifications for and importance of VCs, considering them…frauds or simply as a convenient instrument for money laundering, are mistaken. VCs respond to real market demand and, most likely, will remain with us for a while.” It also concedes that: In extreme cases, such as during periods of hyperinflation, financial crisis, political turmoil, or war, they can become a means of currency substitution in individual economies. Meanwhile, the authors reiterated their opinion that cryptocurrencies pose little threat to the existing central banks. “Despite their technological advances and global reach,” cryptocurrencies are “far from being able to challenge the dominant position of sovereign currencies and the monetary policies of central banks, especially in major currency areas,” they conveyed. In the document’s summary they even hinted at a specific way to keep cryptocurrencies from becoming a more useful money: As long as major trading platforms and financial intermediaries do not accept payments in VCs, their transactional role will remain limited and they will fulfil mainly the third function of money, the store of value —that is, they will serve as one of many investment assets. What do you think of the European Parliament’s findings and recommendations? Let us know in the comments section below. Images courtesy of Shutterstock and European Parliament. Need to calculate your bitcoin holdings? Check our tools section. The post EU Report Advises Regulators Not to Ban or Ignore Cryptocurrencies appeared first on Bitcoin News. View the full article

“If a digital currency isn’t actually used for any transactions, is it, you know, actually a currency?” tweeted Nobel laureate economist with the ears of American progressive politicians, Paul Krugman. He was prompted by a colleague’s recent article regarding a push by Ripple’s XRP to urge users to do more than just speculate. Mr. Krugman, it turns out, backed into one of the main arguments for bitcoin cash (BCH). Also read: 27% of England’s Male Millennials Say Bitcoin Better Investment Than Property Paul Krugman Trolls Ripple, BTC Useless. Evil. Antisocial. Worthless. Impractical. Bubble. Fraud. Those are the kinder adjectives the preeminent US court US economist, with exclusive access to freer world leaders, has used to describe the cryptocurrency phenomenon. He’s also maniacally cheered bitcoin core (BTC) price haircuts, tacitly approving investors being wiped out and worse. More recently, he took to Twitter yet again to troll XRP and BTC enthusiasts, chiding, “If a digital currency isn’t actually used for any transactions, is it, you know, actually a currency?” Mr. Krugman, interestingly enough, backed into a main argument for bitcoin cash (BCH), at least as proponents see things. He made no mention of the fourth largest decentralized currency by market capitalization, but the bitcoin cash gang maintains that for a cryptocurrency to be a currency in any meaningful sense it must be used. Otherwise, it’s just an exercise in greater fool game theory. Mr. Krugman’s snide, smug take has to do with Nathaniel Popper’s, “Here’s Some Cryptocurrency. Now Please Use It,” published in The New York Times this week. Mr. Popper examines Ripple’s recent press barrage, shoving its XRP in front of mainstream audiences from Los Angeles (Ellen DeGeneres) to New York (Stephen Colbert), which have hosted giveaways totaling more than $30 million … and just for those two shows, mind you. “Now comes the hard part,” Mr. Popper explained, “persuading people to use XRP for something other than speculative trading. It is an issue facing most of the still-young cryptocurrency industry. Digital tokens like bitcoin and its many imitators (like XRP) were designed to make electronic transactions of all sorts easier. But today almost no transactions are happening, other than on virtual currency exchanges where people bet on their price.” Cash Flush, Business Light It’s an all-out push by Ripple, including getting perpetually inebriated rapper Snoop Dogg to host after parties. They’ve even forked over $300 million to grease the wheels of getting businesses to use XRP. They’re looking to lure developers. This desperation has its own term, “cash flush, business light.” Store of value arguments have held the day, and so most enthusiasts do hold their positions rather than use, at least as it concerns XRP and the world’s most popular cryptocurrency, BTC. Mr. Popper notes how many “people who bought the digital tokens created by these projects did so in the belief they will one day be useful for real transactions of some sort. If the projects want to keep those investors from selling, the projects have to convince them the tokens will have some long-term value.” For XRP the campaign to get users to see it as a functional currency might be less than a philosophical harkening back to crypto’s rebellious roots. Projects like it are in grave danger of being legally relegated to securities, meaning “they will be subject to restrictions on trading and movement, making it even less likely that people will use the tokens for their intended purposes,” Mr. Popper insists, something Ripple executives are keen to avoid at all cost. They’ve gone to great pains to separate Ripple the company from the currency XRP, with an obvious irony, “Its efforts to promote XRP could demonstrate how reliant XRP is on Ripple.” In any event, the crypto community has at least one example of a currency gaining adoption and medium of exchange use case. Seemingly daily, an innovation or re-adoption of a previous concept long abandoned by bitcoin core as it veered off into settlement layer/digital gold land is implemented, resurrected, as bitcoin cash is, you know, actually a currency. Does Paul Krugman have a point? Let us know in the comments section below. Images via the Pixabay, Twitter. 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 Satoshi Pulse, another original and free service from Bitcoin.com. The post Paul Krugman Trolls Ripple, Accidentally Making a Case for Bitcoin Cash appeared first on Bitcoin News. View the full article

Tax enforcement authorities from five nations announced that they have created a united alliance, the Joint Chiefs of Global Tax Enforcement, known as “the J5.” The J5 said they are committed to combating transnational tax crime “through increased enforcement collaboration,” in other words: working together to gather information, share intelligence, and conduct joint operations. Also read: Azerbaijan to Tax Crypto Incomes and Profits The Internal Revenue Service Is on the Hunt for People Who Used Bitcoin to Evade Taxes The J5 include the Australian Criminal Intelligence Commission (ACIC) and Australian Taxation Office (ATO), the Canada Revenue Agency (CRA), the Dutch Fiscale Inlichtingen- en Opsporingsdienst (FIOD), the British HM Revenue and Customs (HMRC), and the American Internal Revenue Service Criminal Investigation (IRS-CI). “We are convinced that offshore structures and financial instruments, where used to commit tax crime and money laundering, are detrimental to the economic, fiscal, and social interests of our countries,” the IRS posted in a statement on their homepage. “We will work together to investigate those who enable transnational tax crime and money laundering and those who benefit from it. We will also collaborate internationally to reduce the growing threat to tax administrations posed by cryptocurrencies and cybercrime and to make the most of data and technology,” they added. The group met for the first time last week and developed new plans to identify and pursue cybercriminals and those who enable transnational tax crimes, and who enable and assist money laundering. Further updates on J5 initiatives will be announced in late 2018. Bitcoin has presented millions of individuals around the world with a unique opportunity to generate a massive amount of revenue through intelligent investing. The IRS determined that Bitcoin would be treated as property, with losses or gains treated as either capital loss or capital gains for taxation purposes. The IRS reportedly revealed new details about its investigation into tax evasion related to bitcoin, filing court documents that suggest only a tiny percentage of virtual currency owners are reporting profits or losses in their annual returns. What do you think about the IRS joining 5 nations to crack Bitcoin tax evasion? 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 Satoshi’s Pulse, another original and free service from Bitcoin.com. The post Five Nations Join Efforts to Punish Transnational Bitcoin Tax Crime appeared first on Bitcoin News. View the full article

One of the main parts in the vision many Bitcoin supporters have is that the cryptocurrency will become the de facto single currency of the future. But for now its success has brought an explosion of altcoins and ICO tokens. Hoping to tap into the challenge to handle all this crypto cacophony, Decentral developed Jaxx Liberty. Also Read: Luxury Marketplace Fancy Offers Discount for Bitcoin Purchases Jaxx Liberty Decentral, the Toronto-based multi-coin platform founded by Anthony Di Iorio, has announced the beta launch of Jaxx Liberty. The new cryptocurrency wallet provides users with a single hub for the tools needed to manage more than 70 cryptocurrencies. Its new interface introduces a unified dashboard and module-based approach with features including news, market data, portfolio and a multi-chain block explorer. The beta version was made first available in Canada and will continue to be rolled out globally in the coming weeks. “Before the web browser, adoption of the Internet was limited to tech-savvy early adopters. That’s the stage we’re at today with cryptocurrency. Jaxx Liberty is the web browser for your digital assets, empowering the masses to adopt the benefits of cryptocurrency and blockchain,” said CEO and founder Di Iorio. “As the popularity of cryptocurrency continues to grow, the ecosystem has become increasingly fragmented. Jaxx Liberty takes an important step towards unifying and empowering the blockchain community to take control of their digital lives,” he added. Big Plans Going Forward Besides the launch of Jaxx Liberty, Decentral plans a series of new products to come out in the rest of the year. These include a loyalty token rewards system to encourage people to use the wallet, an information portal about the potential of blockchain and cryptocurrency, and a gamified experience to promote engagement, designed to entertain and inform people as they navigate the Jaxx ecosystem. And the company is reportedly setting up a 15,000 square foot new office located in the heart of Toronto’s financial and entertainment district. The video games and science fiction inspired premises is said to showcase holographic receptionists, “moving walls,” and secret tunnels for Di Iorio’s remote controlled Aston Martins. What do you think about the new Jaxx Liberty wallet? Share your thoughts in the comments section below. Images courtesy of Shutterstock, Decentral. 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 Satoshi’s Pulse, another original and free service from Bitcoin.com. The post Decentral Launches Its New Cryptocurrency Wallet Jaxx Liberty in Beta appeared first on Bitcoin News. View the full article

Institutional money is coming. At least that’s been the refrain from desperate cryptocurrency traders for the past six months, praying for an influx of new fiat to shore up prices and float their alt bags. But is it really the case that institutional investors are waiting on the sidelines for the right framework to buy in? At Blockchain Expo in Amsterdam last week, news.bitcoin.com spoke to two exchange leaders who are confident that it’s a question of when, not if, institutional investors pile in. Also read: Shapeshift CEO Defeats Peter Schiff in Bitcoin Debate Institutional Money Is Coming but Will It Benefit Retail Investors? Crypto assets surged by an average of 11.4% on Monday, with bitcoin, predictably, the first to pop. The reason for the pump has been attributed to Coinbase announcing that its custodial crypto service was finally live. The service includes cold storage, an institutional-grade broker-dealer and reporting services, and a client coverage program, and Coinbase is in the process of onboarding hedge funds. But beyond the news fleetingly giving the markets an adrenaline shot, what will the long-term ramifications be of institutional money pouring in, and what’s taken so long? Kimley Kadoche is the Head of Investor Relations at LGO, which is poised to launch as an institutional-friendly exchange capable of handling large fiat transactions, and Nick Cowan is the CEO of Gibraltar Blockchain Exchange (GBX). It’s aiming to become an institutional-grade token sale platform and digital asset exchange, and is onboarding its existing Gibraltar Stock Exchange (GBS) clients. Both individuals are naturally bullish on the prospects of institutional money entering the crypto market, but have their reasons for being so optimistic, having liaised with many of the big spenders pondering a move. Step 1: Regulation It’s no secret that one of the impediments to institutional investors entering the crypto space is the need for a suitable regulatory framework; hedge funds can’t simply invest their clients’ funds in the same free-and-easy manner as a retail investor. “[GBX] fundamentally believe that the technology is here to stay,” begins Nick Cowan, on bitcoin. “We fundamentally believe in adoption…particularly institutional, but what will accelerate that, I think, is the implementation of certain regulations: consumer confidence, investor protection, transparency, and those sorts of issues, which, at the moment, have been holding back a number of major players who might come into this market.” “In the US there is an appetite [among institutional investors],” says Kimley, “but for now they’re just waiting for something more concrete that offers a real solution. And most important that is SEC and FINRA compliant, because that’s the main issue, is you need to be able to report your crypto trading on the books”. Step 2: Security LGO’s Kimley Kadoche Kimley Kadoche asserts that institutional investors have a “big appetite” for the crypto market, but require a “safe structure that offers them a solution” including custodial services. For such investors, “the infrastructure that you have right now on the market is not super safe. There’s always an issue with the custodian, KYC procedures are not very safe, and also we’re waiting for the SEC to be fully transparent on what regulation and actions they want to take regarding digital assets”. Nick is also confident that there is “institutional money waiting on the sidelines” but believes “there are concerns about not just the asset, it’s the custody of these things that has to be addressed for institutions to be able to say, ‘Okay, now we are happy and can come in’”. The approach that Coinbase has taken to custodial security is to provide cold storage of broker funds. LGO is taking a different approach and providing decentralized storage, integrated with Ledger, combined with a centralized order book. Step 3: Liquidity Because institutional traders are typically going to be buying big, liquidity is a key problem that needs to be solved. Leading cryptocurrencies such as bitcoin and ethereum are much more liquid than in the industry’s earliest days, but a single large order can still move the entire market. “The third [problem that must be solved] is the liquidity,” acknowledges Kimley. “Financial institutions are going to be buying and selling big quantities and they need to have a seller or buyer of them to face them. So you need to be able to provide them what they want. You can’t just go on Coinbase and buy 1,000 bitcoin. Right now, there’s a latency problem and slippage.” Step 4: Moon? Nick Cowan LGO’s Kimley Kadoche and GBX’s Nick Cowan sensibly wouldn’t be drawn on whether a flood of institutional money would send bitcoin on another moon mission, but acknowledged that its presence can only be a good thing for the crypto economy. Kimley believes it is “going to improve the trust in the market” while Nick asserts: “I think the long term view is that [institutional] adoption will take place, leading to more people getting involved, and that can only be a good thing”. Institutional money isn’t going to save bitcoin, buy retail investors’ alt bags or spearhead a 1,000-year bull run. But it will certainly add legitimacy to the markets and in the process bring bitcoin, as both an investment vehicle and a device for financial empowerment, to a currently underserved and influential segment of the population. And that can only be a good thing. Do you think the arrival of institutional money will have a positive effect on the cryptocurrency markets? Let us know in the comments section below. Images courtesy of Shutterstock, GBX, and LGO. Need to calculate your bitcoin holdings? Check our tools section. The post Why Institutional Money Is Coming and What This Means for Bitcoin appeared first on Bitcoin News. View the full article

The Indian Supreme Court heard one petition against the crypto banking ban by the country’s central bank today. However, the court did not grant a stay and the ban is set to proceed as planned, prompting crypto exchanges in the country to start implementing their solutions for banking alternatives. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space No Stay Granted by Supreme Court The Supreme Court of India heard one petition against the crypto banking ban imposed by the Reserve Bank of India (RBI) on Tuesday, July 3. This petition is by the Internet and Mobile Association of India (IAMAI) whose members include major crypto exchanges in the country such as Unocoin, Zebpay, and Wazirx. The central bank issued a circular on April 6, banning all financial institutions under its control from servicing cryptocurrency companies. The ban is set to take effect on July 5. A number of industry participants have petitioned against the ban. Other than the petition by IAMAI, there are four other petitions which the Supreme Court will hear on July 20. Wazirx’s founder and CEO, Nischal Shetty, shared with news.Bitcoin.com after Tuesday’s hearing that the Supreme Court did not grant a stay on RBI’s crypto banking ban. The IAMAI petition will now be heard along with the rest of the petitions on July 20. “All eyes are on the 20th now,” he emphasized, elaborating: The IAMAI had [also] submitted a representation to the RBI which was a detailed document explaining blockchain, cryptos and how they function. The RBI has said it will respond to that within 7 days….The representation was made with the belief that if the RBI gets a deep understanding of blockchain and crypto then they may go easy on the ban and think about regulations. RBI’s Ban Effective July 5 – What Will Banks Do? Prior to Tuesday’s hearing, industry participants were hopeful that the court may grant a stay on the RBI ban. Nonetheless, major crypto exchanges in the country have been trying to find banking alternatives. Wazirx is preparing to launch a P2P crypto transfer service to allow its customers to buy and sell crypto through its escrow service, bypassing the RBI ban. Shetty told news.Bitcoin.com that the new service will launch when banks stop providing services to crypto exchanges. He detailed: If banks stop providing services after July 6th then we’ll need to launch P2P. All eyes are on banks now to see what they will do. Do they wait for the July 20th hearing or do they go ahead and implement the ban on transactions from July 6th onwards? Crypto exchange Koinex is also preparing to launch their own P2P network called Loop. The exchange has already launched a crypto-to-crypto trading platform, as did Unocoin and Zebpay. Unocoin’s CEO and co-founder, Sathvik Vishwanath, also told news.Bitcoin.com last week that his exchange is working on banking alternatives. “Due to the RBI’s recent notification on ‘Prohibition on Dealing in Virtual Currencies’, our banking relationships are likely to be disrupted on or before July 5th, 2018. We are in the process of deploying new mechanisms for INR deposits and withdrawals,” his exchange announced. What do you think of the Supreme Court’s decision today? Let us know in the comments section below. Images courtesy of Shutterstock and Wazirx. Need to calculate your bitcoin holdings? Check our tools section. The post Indian Supreme Court Heard Crypto Petition but Upholds RBI Ban – Effective in 2 Days appeared first on Bitcoin News. View the full article