roadrunner

Two countries have recently emerged as the new Meccas for token sales following bans in China and South Korea. The number of initial coin offerings in Singapore and Hong Kong has skyrocketed in recent months, as companies seek a favorable environment to raise funds outside their home countries. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space New Meccas for ICOs Singapore. With some countries cracking down on token sales, Hong Kong and Singapore have attracted companies seeking to raise funds through initial coin offerings (ICOs). According to Fintech businesses, lawyers, and industry groups, the number of companies launching ICOs in Singapore and Hong Kong “has skyrocketed in recent months,” South China Morning Post reported on Monday. The news outlet then quoted Anson Zeall, chairman of the Association of Cryptocurrency Enterprises and Startups Singapore, noting: We cannot say Singapore has become an ICO hub yet, as more work needs to be done, but yes, there has been a lot of activity since September last year. Hong Kong. He and others believe that this is partly due to China’s crackdown on ICOs. “In September, Beijing defined an ICO as an illegal fundraising tool after concerns over financial scams and money laundering. Dozens of ICO platforms in the country have since shut down,” the publication recalled. While China cracked down on cryptocurrencies and ICOs, Hong Kong remains open to them and has seen significant growth in the number of token sales. Neither Hong Kong nor Singapore currently has specific rules for ICOs. Lawyers and ICO issuers in both cities reiterated to the news outlet that raising funds through digital tokens remains loosely regulated there. ICOs Moved Out of China When China mandated domestic ICO issuers to refund investors and stop any new fundraising activities, many of them moved abroad. Daisy Wu is among those whose companies have turned to Singapore shortly after Beijing’s ban. “We wanted to avoid legal risks,” she was quoted. Her company, the Beijing-based Xender, is now trying to raise US$10 million through an ICO for a file-sharing service, the news outlet detailed. Wu confirmed: Many Chinese companies have gone to Singapore for ICOs…We all want to play it safe. Ben Yates, a lawyer with RPC specializing in fintech and cyber law, said that he has seen significant growth in ICO-related inquiries since September, elaborating: It is very likely that the surge in the number of ICO inquiries we have received in the past few months is at least partly a consequence of the restrictions in mainland China…The obvious next step for many Chinese ICO issuers to take is to cross the border. You can still speak Chinese, but you can operate in a more favourable regulatory environment. Korean Fever & Bithumb’s ICO South Korea also banned ICOs in September of last year, forcing local issuers to look elsewhere. They have also reportedly poured into Hong Kong and Singapore recently. “Some argue that there is no legal basis for an ICO ban in Korea, but the authorities say that current laws alone are sufficient,” Money Today Network noted. Earlier this month, news.Bitcoin.com reported that corporations in South Korea are attempting to bypass regulations using subsidiaries overseas to launch their ICOs. Last week, local media reported that Bithumb, one of South Korea’s largest crypto exchanges, is planning to launch a “Bithumb Coin” ICO through a Singaporean corporation. Another South Korean startup, Zikto, is also reportedly preparing an ICO in Singapore. What do you think of Hong Kong and Singapore as the hubs for ICOs? Let us know in the comments section below. Images courtesy of Shutterstock. Need to calculate your bitcoin holdings? Check our tools section. The post Hong Kong and Singapore Emerge as New Meccas for Token Sales appeared first on Bitcoin News. View the full article

Myetherwallet (MEW), the web’s most popular client-side ethereum wallet, has been compromised by a DNS attack. Numerous users are reporting missing funds and Mycrypto, a sister site which spun off from MEW earlier this year, has confirmed as much. The incident highlights the dangers of relying on a centralized interface, even when the funds are held by the individual, and exposes the inherent weaknesses of the Domain Name System. Also read: 16 Regulated Crypto Exchanges Unveil Plans to Restore Public Trust in Japan Myetherwallet Users Report Missing Funds On April 24, scores of Myetherwallet users began to report suspicious activity when trying to access the web-based ethereum interface. As the web’s most popular client-side ethereum wallet, MEW is widely used for sending money to crowdsales, buying Cryptokitties, and conducting many more day-to-day transactions that involve sending ether or ERC20 tokens. The platform does not hold user funds, but like all websites it is still at risk of being hacked by having its DNS servers taken over, exposing the data of anyone who interacts with the service. Shortly after rumors began to circulate, MEW issued a tweet to confirm their veracity: The first signs that something was wrong emanated from the Myetherwallet Reddit, where a user posted a thread entitled “Think I got scammed/phished/hacked”. They had twigged that something was amiss after seeing the following notice when visiting the site: They explained: “Even though every part of my body told me not to try and log in, I did. As soon as I logged in, there was a countdown for about 10 seconds and A tx was made sending the available money I had on the wallet to another wallet.” The address the funds have been sent to currently displays on Etherscan with a warning noting that it may have been involved in a MEW scam. It has conducted 180 transactions, and claimed a total of 215 ETH. It’s been reported that the server MEW users were redirected to is based in Russia. Mycrypto Reveals More Earlier this year, rival site Mycrypto launched as a direct competitor after the Myetherwallet founders went through an acrimonious split. While the Mycrypto team would not wish misfortune on any members of the ethereum community, there may have been a touch of schadenfreude evident in their willingness to frankly disclose the nature of the predicament MEW has found itself in, writing: My crypto also wrote: “Lots of anti-phishing folks in the community and on our team are attempting to collect information about what happened to MEW, as well as attempting to get in touch with their team to assist in any way we can. Moral of the story: use a hardware wallet or run offline.” Services such as Myetherwallet and Mycrypto can be used on desktop by downloading the software, which eliminates the risk of DNS attack. DNS attacks are becoming more prevalent. In December, another ethereum-based platform, Etherdelta, was hit by a similar attack to the one that has affected MEW, with users also reporting stolen funds. Myetherwallet is not the only crypto site to have had DNS issues today either. Earlier, Binance tweeted to say that Google’s DNS were down, preventing some users from accessing the exchange. Incidents such as today’s MEW attack demonstrate that for all the precautions a user may take, websites still present a single, centralized point of failure. What do you think can be done to prevent DNS attacks from occurring? Let us know in the comments section below. Images courtesy of Shutterstock, and Twitter. Need to calculate your bitcoin holdings? Check our tools section. The post Myetherwallet Servers Are Hijacked in DNS Attack appeared first on Bitcoin News. View the full article

The new Japanese cryptocurrency association comprising of sixteen government-approved exchanges debuted on Monday. The group has unveiled its plans to spearhead self-regulation in order to rebuild the public’s trust in the crypto industry. Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space New Japanese Association Debuts Sixteen fully-licensed cryptocurrency exchanges in Japan have formally launched a new crypto association. The group held a press conference on Monday to detail its plans for self-regulation “in order to rebuild public trust battered by a high-profile theft,” Nikkei reported. Press conference held by the new Japanese cryptocurrency association. “The organization is expected to release trading and disclosure rules this summer,” the news outlet elaborated, adding that the group “plans to open its doors to those operating provisionally while the government watchdog reviews their applications.” Taizen Okuyama. The founding exchange members are Money Partners, Quoine, Bitflyer, Bitbank, SBI Virtual Currencies, GMO Coin, Bittrade, Btcbox, Bitpoint Japan, DMM Bitcoin, Bitarg Exchange Tokyo, FTT Corporation, Bitocean, Fisco Virtual Currency, Tech Bureau, and Xtheta. The group also held its first board of directors meeting and chose its key executives. President of foreign exchange platform provider Money Partners Group, Taizen Okuyama, was appointed the chief of the new organization. The publication quoted him declaring: We’ll pursue self-regulation to further the market’s healthy development and allay uncertainty among cryptocurrency users. Three Priorities Named The group will focus on three priorities, the news outlet detailed. The first, as expressed by Okuyama, is the protection of customers. While the Japanese law “requires exchanges to manage customer assets separately from their own,” he admitted that “such a standard is a matter of course for securities firms and foreign exchange brokerages. Compliance has been patchier among cryptocurrency exchanges.” Another priority is to ensure “an orderly rule-making process,” he described, citing as an example the issue of “leverage limits for margin trading and management of insider information, including what currencies a given exchange plans to start supporting.” Founding members of the new Japanese cryptocurrency association at the press conference on Monday. The third priority is “improving disclosure.” The CEO of Money Partners Group explained, as conveyed by Nikkei: [Cryptocurrency] exchanges rarely provide statistics such as total accounts and assets, leaving consumers with too little information to choose one over another. Online brokerages, by contrast, release this data monthly. The group aims to establish a system for timely disclosure, the news outlet detailed, noting that the country’s financial regulator, the Financial Services Agency (FSA), “applauded the group’s creation as a welcome, if overdue, move toward reform.” Furthermore, Okuyama said that the association will leave the regulation of initial coin offerings (ICOs) to the judgment of an FSA study group. What do you think of this new Japanese association and its self-regulatory priorities? Let us know in the comments section below. Images courtesy of Shutterstock and the new Japanese Association. Need to calculate your bitcoin holdings? Check our tools section. The post 16 Regulated Crypto Exchanges Unveil Plans to Restore Public Trust in Japan appeared first on Bitcoin News. View the full article

For some obvious reasons, but also irrational fears, big players like China, Russia, and the European Union are wary of cryptos like bitcoin. Centralized control doesn’t square with decentralization. However, often that’s not how their own regions and smaller neighbors feel about cryptocurrencies. In today’s Bitcoin in Brief we cover some recent developments mirroring this divergence of interests. The balance between center and periphery is likely to determine the future of cryptocurrencies in Eurasia and beyond. Also read: Bitcoin in Brief Monday: Snatching Blockchain, Tracking Bitcoin Only Cryptoyuan, Only Cryptoruble China will not allow any cryptocurrency other than a digital yuan, a Chinese entrepreneur recently told Russian media. Huan Zhang’s company, DAEX Blockchain Group, is working on a clearing ecosystem for cryptocurrencies in collaboration with Russian counterparts. She believes the decentralized nature of blockchain technologies and a centralized clearing platform should be balanced well for the crypto market to function properly. “China treats the blockchain in a positive way, but fears cryptocurrencies,” Zhang told Sputink. “The central bank is working on its own digital coin, cryptoyuan, and authorities won’t allow any other cryptocurrency in the country,” she said on the sidelines of the economic forum in Yalta, Crimea. The Central Bank of Russia is also wary of decentralized cryptocurrencies. On multiple occasions, its representatives have spoken against their uncontrolled circulation and free exchange. The idea of a cryptoruble has its supporters among Russian officials, including in the CBR. For many Russian regions, however, a centralized crypto as a state-issued alternative is simply not good enough. The western exclave of Kaliningrad and Russia’s far-eastern capital Vladivostok, for example, are willing to create offshore zones for businesses working with decentralized cryptocurrencies. Crypto-Crimea Planned The Autonomous Republic of Crimea, which hosted the Yalta Forum, has been dealing with sanctions since it joined the Russian Federation. Local officials are convinced that a vibrant crypto sector could help the region overcome international isolation and develop economically. They have recently asked for permission to set up a crypto offshore zone, crypto exchange, crypto cluster, and even issue a Crimean crypto. The Russian Cryptocurrency and Blockchain Association is actually working on a “Crypto-Crimea” plan encompassing all proposals. Forget about China, Think of Hong Kong Beijing’s crackdown on cryptocurrencies has turned China’s own Special Administrative Region of Hong Kong and the Asian city-state of Singapore into wanted destinations for investors and businesses raising crypto funds. The number of startups launching initial coin offerings (ICOs) in these two territories has sky-rocketed in recent months, according to local fintech entrepreneurs, lawyers, and industry organizations. “Yes, there has been a lot of activity,” said Anson Zeall, chairman of Singapore’s Association of Cryptocurrency Enterprises and Startups. Like many others in the sector, he thinks the increase is related to China’s retreat from ICOs. Thanks to its independent legal system, Hong Kong has also seen significant ICO growth. As reported by Chinese media, all ICO platforms and Bitcoin exchanges have already exited the Chinese market as a result of official warnings of the risks associated with investing in these projects. Well, others, including Hong Kong, which is part of China, are still willing to accept the risks, supporting innovation and economic growth. Europe and the Europeans While United Europe has recently confirmed serious intentions to end anonymity for crypto traders, with a vote in the European parliament last week, crypto exchanges are not turning back on Europeans, not yet. Many trading platforms have decided to move closer to the Old Continent, not too close, though – Switzerland, Gibraltar, Malta, even the exiting UK. Maltese authorities are on a crusade to make their island the friendliest jurisdiction for the crypto sector. Proposed regulations are tailored to provide crypto exchanges, brokerages, asset managers, and crypto users with “legal certainty”. Two of the world’s largest cryptocurrency trading platforms have confirmed intentions to relocate operations to Malta. Binance, which announced it is moving to the “Blockchain Island”, recently said it will hire up to 200 people there. Following its decision, the Chinese rival Okex said it’s also coming to island. Other crypto companies have followed in their footsteps, including Berlin-based blockchain firm Neufund and the gaming platform operator Abyss. Looking to expand beyond Asia, another Chinese exchange, Huobi, is planning to set up an office in London, despite Brexit. “Our statistics show that London is the most active trading scene across Europe,” Chern Chung, Huobi’s senior business development manager for Europe, has been quoted as saying. “Absolutely – London, Britain is the entry point for the European market for us,” Vice-President of Huobi Group Peng Hu confirmed. Beyond Eurasia Crypto businesses are often known for swimming against the stream. The crypto exchange Golix, which has recently felt the heat from competition in bitcoin-loving Zimbabwe, has announced plans to expand its operations to neighboring South Africa. In partnership with the local crypto hub Blockstarters, the trading platform wants to increase its network on the continent, tapping into the very active South African market. Authorities in the regional powerhouse have recently taken steps to tax crypto incomes and transactions, which can curb crypto trade. On the other hand, self-regulation has been mentioned as a solution for the South African crypto sector. So, at the end of the day, Golix might have taken a sound business decision. Do you agree that the diversity of interests in each country and region helps cryptocurrencies? Share your thoughts 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 Bitcoin in Brief Tuesday: Wary Giants, Eager Dwarfs appeared first on Bitcoin News. View the full article

Earlier this week the blockchain technologies research and development firm Nchain released its 1.0 version of Nakasendo a software development kit (SDK) specifically designed to bolster the Bitcoin (BCH) network. Nchain details that the Nakasendo SDK is available for software programmers focusing their energy and resources towards bitcoin cash application and platform development. Also read: This Week in Bitcoin: Taxes, Forks, Pranks and Porn A More Flexible Method of Key Generation and Sharing The London-based Nchain has released an SDK this week for software developers looking to innovate using the BCH blockchain. The SDK is called ‘Nakasendo,’ which is a Japanese name of an ancient trail connecting Edo to Kyoto. In Japanese, the translation means “road through the middle mountains” or “central mountain route” according to Nchain. At the moment, the 1.0 version of Nakasendo is only available to a select group of developers and teams that have been chosen in an initial testing pool. Nchain says that the Nakasendo SDK will be made more available at a later date. Nchain reveals that the Nakasendo SDK will help Nchain port software libraries that will assist programmers in designing bitcoin cash applications. The SDK designed by Nchain is meant to navigate the complexities of blockchain development, and accelerate work. The London firm states that the SDK incorporates two patents from the company’s intellectual property portfolio. “Version 1.0 of the SDK focuses on providing a cryptographic library, to allow for a more flexible method of key generation and sharing,” Nchain explains. This cryptographic library can be used to improve security for any cryptocurrency exchange, and more broadly for controlling access to any type of digital asset or resource. The Open Bitcoin Cash License The company reveals two inventions in the SDK that were curated by Nchain’s Chief Scientist Dr. Craig Wright. The concepts enable the deep prevention of “Mt. Gox-type” hacks of cryptocurrency wallets, and Nchain says they can also be used “far beyond Bitcoin and blockchain environments — for any situation in which sensitive data, assets, communications or controlled resources need to be secured.” Moreover, the firm is releasing the Nakasendo SDK for use under what they call an “Open Bitcoin Cash License.” The license is crafted similarly to the Microsoft Limited Public License, and the BCH license will allow royalty-free usage of the SDK libraries, and any associated patents — but only for developers who create software or applications that operate on the Bitcoin (BCH) blockchain. “We are excited to reach this milestone with the Nakasendo SDK, which will help developers navigate the mountains of blockchain work — Although the SDK libraries will be useful for developers on any blockchain or digital platform, we want to use key elements of nChain’s patent portfolio to help benefit the Bitcoin Cash ecosystem,” Nchain Group’s CEO Jimmy Nguyen explains. That is why we are providing the SDK for free usage only for applications and products that operate on the Bitcoin Cash (BCH) blockchain. The SDK is one of many tools Nchain will use to ignite the BCH blockchain, and help re-invent the business world. Nchain’s chief scientist Dr. Craig Wright (left) and the company’s CEO Jimmy Nguyen (right) No Other Coin or Fiat Will Do These Things One of the selected testers of the Nakasendo SDK has explained the building blocks provided have helped them further accelerate their application. The bitcoin cash wallet provider Handcash an SPV client that enables Near Field Communication (NFC) transactions has been testing Nchain’s SDK. “We are currently testing Nchain’s Nakasendo SDK. It turned out to be the missing piece for an upcoming feature that will allow us to advance to the next stage with Bitcoin Cash — Good thing about patents: No other coin (or fiat) will do these things,” Handcash notes on April 22. What do you think about Nchain’s SDK and open license for bitcoin cash developers? Let us know what you think in the comments below. Images via Pixabay, Nchain. 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 Nchain Launches Nakasendo SDK for Bitcoin Cash Development 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. HONG KONG – April 24, 2018 – CoinFi, a leading market intelligence platform offering Wall Street-caliber trading tools, signals, and analysis on the cryptocurrency market, today announced a strategic partnership with HybridBlock, a crypto e-learning hub, trading platform, and global exchange. The joint venture enables CoinFi to syndicate HybridBlock research and analysis and integrates smart order routing through HybridExchange, HybridBlock’s web-based trading platform. HybridBlock will incorporate CoinFi’s trading tools and data feeds for its intermediate and advanced users as well as curate original research by CoinFi’s analysts. The partnership, which is expected to ramp up the build and development of more robust product offerings for both brands and accelerate organic user growth, comes after each company successfully raised funding via Initial Coin Offering (ICO) earlier this year. CoinFi met its hard cap of $15 million via a private ICO in January, while HybridBlock raised $44 million during its pre-sale period in March. “We see a lot of mutual benefit coming out of this strategic partnership with HybridBlock,” said CoinFi co-founder and former Goldman Sachs equities trader Timothy Tam. “HybridBlock is positioned to be an important player in the Asia-Pacific cryptocurrency trading space. We’re excited about the potential of leveraging HybridBlock’s Hybrid Exchange technology for smart order routing and looking forward to implementing CoinFi trading signals, algorithms, and data feeds on HybridBlock’s platform, where they will provide a critical edge for HybridBlock’s intermediate and advanced traders.” “Both HybridBlock and CoinFi strongly believe that education is a critical piece to mass adoption of cryptocurrencies,” said HybridBlock co-founder Rod Jao. “As part of continuous education, HybridBlock encourages our users to keep updated with relevant crypto-related news, and we’re excited to syndicate CoinFi’s expert cryptocurrency research and analysis on Hybrid Central”. HybridBlock co-founder Rod Jao has always respected Mr. Tam’s work ethic and vision. “Timothy’s Wall Street experience has allowed CoinFi to be truly innovative and visionary; merging WallStreet intelligence and sentiment software with the blockchain, a critical missing component,” said Jao. The rapidly growing world of cryptocurrency markets – market capitalization of all cryptocurrencies passed $700 billion in January – has created a tremendous need for education as well as real-time news, analysis, and trading tools. With the partnership, CoinFi and HybridBlock bring further clarity and resources to the market. CoinFi recently released its platform for crypto financial data and market-moving news feeds. The company is also slated to launch a suite of trading signals and institutional-quality algorithms later this year. This coincides with HybridBlock’s upcoming Open Token Sale and the launch of their platform to the world. “We want to deliver the very best tools for our customers to ensure the best chance of success and this partnership is another step towards that objective,” said Rod Jao. For more information, visit www.CoinFi.com and www.HybridBlock.io. About CoinFi CoinFi (KuCoin: COFI) is the world’s first decentralized crypto market intelligence platform, bringing Wall Street-caliber financial intelligence to the cryptocurrency markets. Founded in 2017 by technologists and former Wall Street analysts, equities traders, and hedge fund managers, the company is based in Hong Kong an recently completed a $15 million private token sale to further expand its technology and trading tools. CoinFi offers crowdsourced and professionally curated research, analysis, trading signals, trading algorithms, and market-moving news to give traders the real-time market intelligence needed to gain an edge. With a community of over 100,000 cryptocurrency traders, CoinFi is poised to become the leading provider of market intelligence for the cryptocurrency markets. About HybridBlock HybridBlock has created a premium educational platform called Hybrid Central that guides you through a gamified educational experience to explain basic blockchain terminology, help you purchase and trade your first cryptocurrency, offer opportunities to develop blockchain-based skills, and facilitate participation in the global blockchain community. In addition, the company has developed several trading applications that cater to traders of various levels: beginner (Basetrade), intermediate (HybridExchange), and advanced (HybridTerminal). Contact Email Address nate@coinfi.com Supporting Link https://www.coinfi.com 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: CoinFi Partners with HybridBlock to Expand Crypto Intelligence Offerings appeared first on Bitcoin News. View the full article

In a little more than three weeks time the Bitcoin (BCH) network will hard fork by upgrading its block size to 32MB and incorporate additional functionalities to the protocol. Currently, the entire community is steadily preparing for the consensus change as development teams release new code, while users and infrastructure providers upgrade their full node implementations. Also read: Five Reasons Why Bitcoin Cash is About to Win Big The BCH Network Will Perform the Biggest Block Size Increase in History The decentralized cryptocurrency bitcoin cash and its network will be upgrading this May 15 at approximately 12:00:00 UTC, 2018. The Median Time Past (MTP) method will activate the consensus change. BCH proponents are pretty excited for the upgrade, to say the least, as the 32MB block size increase will be the largest block size expansion of its kind within the cryptocurrency landscape. The increase will allow developers to maintain consistent transaction throughputs for the billions of people living in the world, alongside on-chain fees anyone from any developing nation can afford. Using today’s statistics BTC is more than 10.73X more expensive to transact with than BCH. Next month’s bitcoin cash 32MB block size increase will allow enough room for transactions for years to come. Tokenization and Smart Contracts Are Coming Colored coins and representative tokens are coming to the BCH chain. In addition to the large block size increase, the BCH chain will incorporate other features that have created excitement throughout the bitcoin cash community. For instance, the BCH development teams have added certain OP_Codes and a larger OP_Return data size. This upgrade will enrich BCH with a variety of robust features such as tokenization and the ability to program simple smart contracts via the BCH chain. Instead of using a separate platform like Ethereum or Counterparty, BCH developers will be able to create representative or color coins that can be backed by anything. After the hard fork and some community development, things like bonds, stocks, precious metals, commodities, and any physical or virtual object can be represented by a BCH backed color coin. With a smart contract functionality, the BCH chain can be used to program autonomous actions like dispersing BCH to your children or spouse at a later date in time. BCH-based smart contracts and scripting abilities are on the way. Prepping for the Upgrade Out of the 1,762 public Bitcoin (BCH) full nodes in 42 countries, many of these nodes who use the ABC client have begun to upgrade their nodes to the latest Bitcoin ABC release which contains the necessary May 15 changes. At the moment according to node data, Bitcoin ABC represents 62 percent of the BCH network, while more than 58 percent of those nodes have upgraded to the version 17 ABC release. Other clients represented within the BCH network include Unlimited, Parity, XT, and Bitprim. The Parity client’s development team seems to be adding the necessary code changes this week on Github. Bitcoin Unlimited’s (BU) 1.3.0.0 BCH implementation has been prepared to accept the consensus changes and a public release is now available. “This release implements Bitcoin Cash, compliant with the latest hard fork (May 15, 2018), including 32MB blocks, extended OP_RETURN data, and additional opcodes,” explains the BU team. The Bitcoin XT Cash client has also updated its full node implementation and has released its latest version to the public that mandates a 32MB block size limit consensus change. The XT release changes indicate support for the Bitcoin Cash May 2018 protocol upgrade and Cashaddr by default. Full node implementations are steadily upgrading clients to accept the May 15 upgrade. After the May Upgrade More Features Are in Store for Bitcoin Cash Bitcoin cash proponents seem ready for the pending upgrade, as last year the community completed a successful revised Difficulty Adjustment Algorithm (DAA) change, alongside a Base32 address serialization. The pending 32MB upgrade and re-enabling Satoshi Op_Codes are on the way this May. Then BCH enthusiasts still have more innovation to look out for after those changes are complete. For instance, the Bitcoin ABC team is working on UTXO commitment changes, and ABC and XT developers are collaborating on another DAA using a new PID control algorithm. The BU development team is in the midst of researching and testing a new block method called Graphene, and enabling binary contracts via OP_Data sig verify. What do you think about the upcoming Bitcoin Cash upgrade slated for May 15? Let us know in the comments below. Images via Shutterstock, Pixabay, Bitcoincash.org, and BCHnodes.online. 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 Bitcoin Cash Proponents Prepare for the Largest Block Size Increase Ever appeared first on Bitcoin News. View the full article

Former Obama administration financial regulator Gary Gensler believes cryptocurrencies such as ether and ripple appear as unregistered securities, and in current violation of the law. His comments carry considerable weight in the broader financial community. They also come after venture capitalists and lawyers invested in ether projects met secretly with the US Securities and Exchange Commission (SEC) to head off such regulation. Spokespeople for both coins insist they’re not securities. Also read: Telegram Urges Paper Airplane Protest, Pussy Riot Activist Arrested Ether and Ripple Might Be Securities Former Obama CFTC head Gary Gensler told The New York Times, “I would be surprised if 10 years from now this isn’t somewhere in the financial system in a meaningful way. But so much of the stuff that is being promoted now will not be around.” The ‘this’ he’s speaking of is cryptocurrencies, and as part of his appointment to the Massachusetts Institute of Technology (MIT), Mr. Gensler is weighing in on the phenomenon’s future with regard to regulation. In particular, he’s focusing upon two of the most popular cryptos, ether and ripple, as potentially very susceptible to future designation as securities. Should that happen, many experts believe it would herald the decline of both. Securities regulation imposes a host of legal burdens upon registrants, and costs to comply are often prohibitive and burdensome. “There is a strong case for both of them — but particularly Ripple — that they are noncompliant securities,” he told Nathaniel Popper. Bitcoin and others like it are decentralized to such an extent as to not trigger regulation, he believes. That’s not so clear in the cases of ether and ripple, both of which Mr. Gensler insists are in violation of securities law. “2018 is going to be a very interesting time. Over 1,000 previously issued initial coin offerings, and over 100 exchanges that offer I.C.O.s, are going to need to sort out how to come into compliance with U.S. securities law,” the Times quotes him as saying. Indeed, representatives with heavy financial interests in ether-related projects recently were discovered to have secretly pled their case to the SEC in hopes of heading off what some say is certain regulation. That’s a potential problem for tens of billions of dollars in coins respectively when ether and ripple are combined. Impact Not Good Gary Gensler Should such a designation be handed down, one of crypto’s largest markets, the United States, would essentially be cut off, made against the law for trading ETH and XRP on exchanges. It’s not too extreme to figure such a move would impact both coins’ prices, and probably not in a good way. Mr. Gensler, 60, was tapped by MIT’s Media Lab and its Digital Currency Initiative, along with being a lecturer at its Sloan School of Management (with a blockchain emphasis) for his expertise in the financial sector. His views on the future of regulation carry heft simply because of his past experience in the Obama administration, and previous connections to Goldman Sachs as well as helping to finance the ill-fated Hillary Clinton run of 2016. Asked for comment about Mr. Gensler’s claims, the Ethereum Foundation answered how it “neither controls the supply of nor has the ability to issue Ether, and the quantity of Ether that the foundation holds (under 1 percent of all Ether) is already lower than that held by many other ecosystem participants,” according to the Times. A Ripple spokesperson responded by insisting, “XRP does not give its owners an interest or stake in Ripple, and they are not paid dividends. XRP exists independent of Ripple, was created before the company and will exist after it.” Do you think ether and ripple should be regulated? Share your thoughts in the comments section below. Images courtesy of Shutterstock. 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 Ether & Ripple Doomed As Securities According to Regulation Expert appeared first on Bitcoin News. View the full article

One of bitcoin’s leading luminaries, Vinny Lingham has an opinion on everything and an uncanny ability to sense market movements, earning him the moniker of Bitcoin Oracle. News.Bitcoin.com caught up with the serial entrepreneur to get his thoughts on bitcoin cash, Lightning Network, token models and more. Also read: Five Reasons Why Bitcoin Cash is About to Win Big Vinny Lingham on Regulation On April 20, over 1,000 delegates gathered at the Fairmont in Santa Monica for Start Engine’s ICO Summit 2.0. The event began sharply at 8:30am, with Vinny Lingham the most recognizable figure on a panel titled The State of ICO Regulation. Afterwards, news.Bitcoin.com sat down with the Civic founder for a chat about dual token models, blockchain scaling, and the acrimony that’s riven elements of the bitcoin community. The overarching message to emerge from the summit was that most tokens are securities, and following the regulatory route – likely Reg A+ – is the only way to avoid SEC censure. “If the price of something is determined by its ability to deliver an investment return then it’s a security,” acknowledges Vinny. Belatedly accepting that many, if not most, ICO tokens may fall into that category, a number of projects have opted for a dual token model, one a utility, the other a dividend. Vinny Lingham is not a fan of this setup however, opining: People will raise money by whatever way they possibly can [even] if it means bending the rules, changing the system, and unsuspecting people will wind up putting up the money to buy it. But just because you can raise money in a certain way doesn’t mean you should. Like most of the delegates at the Start Engine conference, he’s convinced that the industry is headed towards securities, complete with the full regulatory compliance that brings, venturing: “I think security tokens will outpace utility tokens by a mile in the next three years”. A month previously, in a blog post titled The Value Trap Dilemma, he wrote: “If you’re building a utility token, it has to have real utility — if you’re just using it to raise money, then it’s a security.” Don’t Fear the SEC On the same day that news.Bitcoin.com spoke to Vinny Lingham, details were emerging of the SEC-led complaint against Centra, including allegations of the ICO’s founders pumping the price and creating fake team members. When asked whether there’s likely to be further subpoenas in the token space, Vinny responds: “There will definitely be some. They’re going after the most egregious people.” He doesn’t believe that escalating SEC activity could impact on all U.S.-based token projects, though, including his own Civic, adding “I sleep very well at night, I don’t worry about the next day waking up and [receiving a subpoena]”. Vinny was tight-lipped about future developments for Civic other than to confirm there are “lots” on the way, some of which will emerge at the Consensus summit on May 14-16 in New York. He gives short shrift to the string of identity-based projects that have emerged since Civic, referencing a recent tweetstorm he composed on the topic, and proclaiming: “If you ask someone what are the top companies in the [identity] space, Civic will always come up number one. And there’ll always be a different number two.” Vinny Isn’t Struck by Lightning When conversation switched from the token economy to bitcoin, Vinny predictably had a lot to say about BTC, BCH, and the scaling methods attempted by both sides. There’s a tendency for proponents (or “maximalists” as the more devout are sometimes branded) to fall on one side of the divide rather than straddle the fence. Vinny Lingham is much more measured, seeing the merits in both strands of bitcoin, whilst remaining broadly supportive of the approach taken by Bitcoin Cash. The South African entrepreneur isn’t a fan of the elements that are “too extreme” and encourages both camps, Cash and Core, to “exercise some restraint”, particularly when it comes to asserting which brand of bitcoin is the true bitcoin. A day after talking to news.Bitcoin.com, he shared the following tweet: When asked whether he believes a sizeable Bitcoin Core contingent are pinning all their scaling hopes on Lightning Network (LN), Vinny agrees vigorously. “It is the panacea for them right now. Lightning is a big thought experiment which is in code right now and is not proven. How much money is in Lightning – less than $100k? There’s nothing there.” While acknowledging the effort that has gone into developing LN he says: Lightning, maybe it works, maybe it doesn’t. The point is, you’re going from something that’s proven, that can scale [increasing the block size], at least to some degree, versus something which is unproven [LN] and it may not be able to scale, and we’re pinning our hopes on it. It’s very impractical. “I think Segwit’s got some flaws in it,” says Vinny at one stage, before asserting that in the short to medium-term it makes more sense to increase the block size, venturing that “There’s no real centralization risk with [increasing the BTC block size to] two megabytes. There’s no centralization there and anyone who thinks otherwise is stupid. Let’s say the number of nodes that could afford to run in the long-term dropped by around 2%, that’s not going to create centralization.” Decentralization Isn’t Everything On the topic of decentralization, and the sacrifices that must be made to increase the speed of new blockchains, Vinny predictably has a lot to say: EOS is one where there is a trade-off, it’s more centralized, but it’s not very centralized. I think there’s a balance you can get. Like, how many nodes is enough [to ensure decentralization]? That’s the real question and no one can give me an answer…Is it a billion? Give me a number, any number. He agrees that new blockchains are still years away from needing to fulfil the half a billion transactions a day they purport to offer, adding: “That’s exactly my point. We’re nowhere close to the usage of needing to worry about it. Instead of kicking the can down the road and worrying about it later, we’re trying to deal with this now and it’s not an issue right now.” The interview concludes with Vinny reflecting a sentiment that is expressed multiple times during the course of the summit by investors, lawyers, and entrepreneurs: that the token economy is “such a dynamic space you’re basically just guessing what [governments and regulators] are gonna do next.” The Bitcoin Oracle has been proven right about many things, but when it comes to figuring out regulators, even he’s in the dark. Do you agree with Vinny Lingham that certain elements within the BCH and BTC communities are too ‘extreme’ in their views? Let us know in the comments section below. Images courtesy of Shutterstock, Twitter, and Vinnylingham.com. Need to calculate your bitcoin holdings? Check our tools section. The post Vinny Lingham Interview: Scaling, Securities and Bitcoin Extremism appeared first on Bitcoin News. View the full article

Russian ICOs attracted a total of $300 million last year but half of the funds went to financial pyramids, according to the Russian Association of Cryptocurrencies and Blockchain. The organization that represents the crypto community in the country is now working on an ICO standard to help investors distinguish real projects from fraudulent schemes. Russian ICOs account for 10% of global volume. Also read: Russia’s Supreme Court Overturns Decision to Block Bitcoin Website Russia Expects Up To $1.5 Billion from Coin Offerings At least $150 million dollars raised by Russian ICOs in 2017 were collected by pyramids, RACIB revealed, while announcing a plan to fight financial fraud in token sales. The initial coin offerings with Russian participation account for 10% of the global market, as news.Bitcoin.com previously reported. The association expects Russian projects to attract $1-1.5 billion USD in 2018. This is some serious money and the Russian crypto community believes the country should take advantage of it. Two major factors can influence negatively these investments and RACIB is actively working on both fronts. Excessive regulation may force Russian companies to seek jurisdictions with a more favorable climate for crypto business. The association already warned about that in a report addressed to President Putin. RACIB is also preparing an “ICO standard” to help investors distinguish real ICOs from fraudulent schemes. A startup conducting a coin offering will be judged by several criteria, including the credibility of its team members, Izvestia reported. RACIB will verify if the company has a website with information about previous projects. The association will check for a white paper and a roadmap for the ICO. Startups will be expected to announce a minimum rate of return of the investments. The ICO standard is part of efforts to introduce a level of self-regulation and will not be included in the upcoming legislation. Two bills regulating the crypto sector have been filed in the State Duma, the lower house of Russia’s parliament. The draft law “On digital financial assets” legalizes various crypto activities, including initial coin offerings. Another bill aims to amend the civil code in order to regulate the use of “digital money” in payments and protect investors’ rights and interests. Authorities Agree, Some Self-Regulation Is Necessary The chairman of the parliamentary Financial Market Committee, Anatoliy Aksakov, shares the view that the ICO sector should regulate itself to a certain extent. The proposed legislation covers token sales only in general terms, he noted. The details can be introduced through self-regulation, the lawmaker added. Some Russian experts believe that only “qualified investors” should have access to initial coin offerings. “Citizens can lose money not only because a project might be fraudulent, but also because they don’t understand cryptocurrencies very well,” says Teimuraz Vashakmadze from the Russian Presidential Academy of National Economy and Public Administration. Investments in tokens can be highly risky, he warns. Clear and transparent self-regulation by market participants will help minimize fraud in this sector thinks Igor Nikolaev, Director of the Institute of Strategic Analysis at FBK Grant Thornton. However, he is unsure if that will help the market at all. Nikolaev says that the potential of digital currencies is limited due to the reluctance of central banks to recognize them as means of payment. The State Duma has already accepted the bill “On digital financial assets”, which was also reviewed by the Cabinet of Ministers. This draft, along with the amendments regulating the use of cryptocurrencies, should be adopted by early summer, probably in time for the football World Cup. Russia is expecting $2 billion dollars from fans visiting the country. Part of the money is likely to come in the form of crypto payments. Do you think self-regulation is an appropriate mechanism to fight financial fraud associated with ICOs? 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 Half of the ICO Money in Russia Went to Pyramids appeared first on Bitcoin News. View the full article

Despite the multitude of headlines declaring that bitcoin mining was becoming unprofitable over the last four months, the hashrate between both Bitcoin Core (BTC) and Bitcoin Cash (BCH) networks has exploded. At the moment both SHA-256 proof-of-work (POW) powered protocols have been maintaining more than 35 exahash per second, becoming one of the most powerful computational systems in the world. Also read: Play Music on Jukebox.cash – a Bitcoin Cash Infused Global Playlist BTC Mining Hashrate Unphazed by ‘Crypto Winter’ There has been a massive decline in fiat value for nearly all cryptocurrencies represented within the digital asset universe during the 2018 ‘Crypto Winter.’ During this time, researchers and pundits have declared that when BTC/USD prices dipped below $8K, mining was allegedly unprofitable in some regions. However, as far as blockchain data is concerned mining has grown exponentially even during the last four months when BTC prices found new lows. This year pools such as BTC.com, Antpool, Slush, and Viabtc have increased their hashrates considerably. A factor possibly due to new semiconductors and innovations in mining technology. Today the BTC global hashrate is 30 exahash per second. Over the last four months even when the price declined hashrate increased. Over the last seven days, BTC miners have held a fairly consistent 30 exahash per second. From December 2017 up until April 2018, the BTC chain’s hashrate has increased significantly. According to estimates, Chinese mining pools make up most of the BTC hashrate (80%) as eight of the top ten pools are based in China. Chinese mining pools make up more than 80 percent of the BTC global hashrate. The top five pools command close to 75 percent of the global BTC hashrate with BTC.com taking the cream of the crop. BTC.com now captures 28.9 percent of the BTC hashrate today, with Antpool’s 15.2 percent following behind. There are a total of seventeen known mining pools pointing their resources at the BTC chain and one unknown operation controls 10 percent of the network. Bitcoin Cash Hashrate Explodes The Bitcoin Cash network has also increased its hashrate significantly as well, as BCH miners are now processing between 3.6-5 exahash per second. Just a few months ago the BCH hashrate was between 0.5-1 exahash per second. At the time of writing due to the 60 percent bitcoin cash price increase, it is 1.7 percent more profitable to mine BCH than to mine on the BTC chain. Presently the Bitcoin Cash Difficulty Adjustment Algorithm (DAA) is operating at 14.8 percent of BTC’s difficulty. March and the month of April were the biggest hashrate spikes for BCH since the DAA was fixed last November. A side-by-side chart of BTC and BCH hashrates. BCH is represented in purple while the orange trendline is BTC. BCH has roughly thirteen known mining pools and 2-3 unknown mining operations pointing their resources at the chain. The biggest BCH mining pools over the last seven days include BTC.top, Viabtc, BTC.com, Antpool, and Bitcoin.com. Over the last week, the 2-3 unknown mining pools have captured 31 percent of the BCH network hashrate. Roughly 60 percent of the BCH global hashrate stems from China, as bitcoin cash has a more diversified spectrum of countries within its hashrate distribution. Bitcoin Cash mining pool hashrate distribution over the last seven days and 24-hours. The Entire Cryptocurrency Ecosystem Has Seen Hashrates Spike Overall there is a lot of computational power directed at both of these two networks, and they eclipse the entire landscape of 1500+ other digital asset hashrates. Although the processing power for those cryptocurrencies has increased as well over the last four months. Since January 2018 until now, the Ethereum network’s hashrate has grown immensely during the ‘Crypto Winter.’ Nearly every PoW cryptocurrency’s hashrate has spiked over the past four months. The same thing for the Litecoin network, as its hashrate has exploded during its 4-month price downswing. This trend has taken place across nearly every single cryptocurrency that uses a POW-type of consensus algorithm. Most all of the cryptocurrency hashrates worldwide have spiked considerably this past January through April 23, 2018. It’s safe to say all these theories of miners shutting down machines soon, and ‘losing their shirts’ is pretty far fetched. What do you think about the hashrate explosion between BTC and BCH and all the other currencies over the last four months? Let us know your thoughts about this subject in the comments below. Images via Shutterstock, Fork.lol, BTC.com, Blockchain.info, Coin Dance, and ETHscan.io. Need to calculate your bitcoin holdings? Check our tools section. The post Bitcoin Miners Unaffected by Price Decline — Hashrates Spiked Exponentially appeared first on Bitcoin News. View the full article

The web’s favorite crowdsourced encyclopedia has just edited its own behavioral guidelines. Wikipedia’s “Conflict of interest” (COI) page outlining etiquette for its 140,000 active editors now includes a reference to cryptocurrency. If you’re editing pages about crypto, the mere act of owning cryptocurrency may preclude you from doing so. Also read: Telegram Urges Paper Airplane Protest, Pussy Riot Activist Arrested Wikipedia Is Conflicted on Cryptocurrency According to Wikipedia, any external relationship its contributors hold – including a relationship with cryptocurrency – could present a conflict of interest. Its COI page states: Any external relationship—personal, religious, political, academic, legal, or financial (including holding a cryptocurrency)—can trigger a COI. How close the relationship needs to be before it becomes a concern on Wikipedia is governed by common sense. For example, an article about a band should not be written by the band’s manager, and a biography should not be an autobiography or written by the subject’s spouse. On the one hand, these guidelines make a lot of sense, but on the other, they create a paradox as the people most knowledgeable about a particular Wikipedia page are those with a strong personal interest in its subject matter. It’s hard to see how owning bitcoin, for example, should bar an editor from being able to update the Bitcoin page. With smaller, more controversial cryptos however (think IOTA or Verge), there’s greater potential for a COI to emerge. It’s easy to envisage a scenario, for instance, in which a passionate editor may decide to censor or exclude negative news about their favorite cryptocurrency. Partisanship Is a Persistent Threat on Wikipedia Certain Wikipedia pages attract an abnormally high number of edits, often because the subject is controversial or prone to attracting mischief-makers. In extreme cases, this can lead to a page becoming fully or partially locked to prevent anonymous editors from distorting the truth or inserting their own agenda. Wikipedia is notorious for its edit wars in which opposing camps attempt to control the narrative. One such page to have fallen prey to this is Bitcoin Cash. Its talk page notes that “There have been attempts to recruit editors of specific viewpoints to this article” to address this. Anyone can create a Wikipedia account and become an editor. To date over 33 million ‘Wikipedians’ have done so, of whom almost 140,000 are active. This army of volunteers performs an essential job, updating, proofing, and fact-checking millions of entries. Given the complexity of verifying the legitimacy of Wikipedia’s 5.6 million English articles, verifying that all its editors don’t have a conflict of interest is impractical. As the Bitcoin Cash page demonstrates, even when an editor doesn’t own a particular cryptocurrency, it doesn’t always prevent them from being tempted to tamper. Do you think owning cryptocurrency should bar a Wikipedian from editing a cryptocurrency page? 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 If You’re a Wikipedia Contributor, Owning Cryptocurrency May Be a Conflict of Interest appeared first on Bitcoin News. View the full article

As India works on the bill to regulate cryptocurrencies, each government department has its own opinion on whether to ban the use of crypto, including bitcoin. The Finance Ministry, the Reserve Bank of India (RBI), the Income Tax Department, and the Special Investigation Team have voiced their opinions on the upcoming bill. Also read: Russian Regulators Draft Law to Restrict Crypto Mining, Payments, and Token Sales No Consensus Among Regulators India is preparing a bill on the regulation of cryptocurrency. “The bill has been drafted and consultation has been started with the concerned agency,” the Navbharat Times reported last week. The news outlet quoted sources explaining that the regulators are divided on whether to ban the use of cryptocurrencies such as bitcoin. “The finance ministry is in favor of regulating [cryptocurrency],” sources said. The Income Tax Department, on the contrary, is not in favor of regulation, the news outlet conveyed, and quoted sources explaining: The regulation of virtual currency is almost impossible and it promotes the use of black money. The RBI “is also not in favor of banning virtual currencies,” but sources pointed out that “the current form of the bill proposes to ban virtual currency businesses.” However, there may be exemptions for “issuing crypto tokens in exchange for assets.” Meanwhile, the Indian Special Investigation Team (SIT) “wants to ban the use of bitcoins” after discovering at least four cases where the digital currency was used to pay for drugs, the Sunday Guardian reported. The SIT comprises of officials from the Narcotics Control Bureau (NCB), the Enforcement Directorate (ED), the Central Bureau of Investigation (CBI) and the Income Tax Department. The SIT has previously asked the ED, NCB and the Income Tax Department “to take adequate measures to prevent the use of cryptocurrencies,” the publication noted, adding that the Team “has called for a second round of meetings to be held in Delhi next month, where the officials from all the aforementioned agencies will review the use of cryptocurrencies.” Experts Say Crypto Ban Not Very Feasible The debate is also taking place in the private sector. Sarvesh Tyagi, a Delhi-based cyber law expert, told the Sunday Guardian that “it is doubtful that the SIT will succeed in banning the use of cryptocurrencies. Ban is not a solution. We need a regulatory authority.” She elaborated: A blanket ban on the use of cryptocurrencies is not a very feasible solution as drug smuggling is a big problem, and in most cases, these transactions have nothing to do with use of cryptocurrencies. Crypto Businesses Fight Back The RBI announced earlier this month for banks and payment gateways under its control to stop providing services to businesses dealing in cryptocurrencies. “Banks have already sent notices to exchanges,” Sathvik Vishwanath, CEO of a leading Indian exchange Unocoin, told news.Bitcoin.com. The RBI allows banks “about 3 months of time to end the relationships” with crypto businesses, he noted, adding that crypto companies “will be attempting to challenge the [RBI] order” in the Supreme Court as a consortium. One company, Kali Digital Eco-Systems, has already appealed to the High Court in Delhi against the recent RBI crackdown. The company is behind the upcoming crypto exchange called Coinrecoil. On Sunday, the company announced that Delhi High Court has accepted its petition against the Indian regulators, adding that: Hon’ble High Court of Delhi has issued a notice to the Reserve Bank of India, the Union of India through Secretary, Ministry of Finance and GST Council. The next hearing in this case is on May 24, 2018. What do you think of the Indian regulators’ divided opinions on how to regulate cryptocurrencies? Let us know in the comments section below. Images courtesy of Shutterstock and the Indian government. Need to calculate your bitcoin holdings? Check our tools section. The post India Divided on Whether to Ban Crypto Use appeared first on Bitcoin News. View the full article

The Russian government has officially provided a response to the bill that seeks to outline the legal framework for cryptocurrencies. Many flaws and inadequacies were pointed out including unjustified restrictions on Russian residents and foreign investors. Also read: Russian Regulators Draft Law to Restrict Crypto Mining, Payments, and Token Sales Response to Crypto Bill The Russian government published its official response on Saturday to the draft federal law no. 419059-7 “On Digital Financial Assets” which aims to regulate cryptocurrencies, crypto mining, as well as initial coin offerings (ICOs). The House of Government, Russia. In its response, the government outlined numerous concerns and suggested some amendments to the bill. The first change suggests relates to Article 2 of the bill which defines digital financial assets including cryptocurrencies. Citing the definition of a digital financial asset as “a property in electronic form created using cryptographic means,” the government says this definition does not distinguish crypto-assets from “other objects created using means of cryptographic protection of information, such as certificates of enhanced qualified electronic signature, session keys generated in the process of establishing connections during the implementation of information exchange protocols in information and telecommunications networks.” In addition, the response states: The draft law does not contain the regulation of legal relations arising in connection with the circulation of cryptocurrencies, which may entail difficulties in law enforcement practice. Furthermore, the government finds “it necessary to regulate accounting issues” of crypto-assets as well as “introduce corresponding changes in the legislation of the Russian Federation on taxes and fees” in order to tax crypto transactions. No Mechanism to Identify Miners The definition of mining also needs additional work. The document suggests expanding the list of criteria to qualify as a crypto miner “since the energy consumption indicator does not provide an unambiguous basis for such a conclusion.” Some Russian ministries previously said that they were confident miners could be tracked and identified using electricity consumption. However, the government contradicted this belief in its response to the bill, noting: The government believes that activities aimed at creating a cryptocurrency may not be directly related to the formation of a transaction register, but rather to provide energy, technical capacities, including areas where the equipment necessary for mining is located, and therefore this activity cannot be attributed to mining. In view of the foregoing, the government considers it necessary to clarify the definition of the proposed concept of ‘mining’. Unjustified Restrictions For both cryptocurrencies and ICOs, the government commented, “from the provisions of the bill it is impossible to establish how their primary emission is regulated,” elaborating: The provisions of the draft law, as well as an explanatory note to it, do not contain a justification for introducing a number of restrictions imposed on residents of the Russian Federation. Citing Article 3 of the draft law as an example, the government interpreted, “residents of the Russian Federation cannot invest in digital financial assets in foreign jurisdictions.” However, “such a restriction is not justified.” Russian residents will not be the only group restricted by this bill; foreigners will also face unnecessary restrictions. The document points out that the bill says a crypto wallet is opened by an exchange “only after passing the procedures for identifying its owner in accordance with the federal law on countering the legalization (laundering) of criminally obtained incomes and the financing of terrorism.” However this will “significantly” hamper the participation of foreign investors as well as local residents, the government declared, adding: The government proposes to envisage in the bill the possibility for the operator of the exchange of digital financial assets to simplify identification by remote means. The rights of foreign investors also need to be adjusted in the bill since “the government considers it expedient to further regulate the issue related to the rights of foreign investors to transfer cryptocurrencies to the issuer’s wallet in exchange for Russian issuer tokens.” It says “such a measure will increase the investment attractiveness of Russian projects.” Trade Control and Identifying Crypto Owners One proposal the government explicitly supports is ensuring control over the exchange of cryptocurrencies for Russian rubles or other foreign currencies above a certain size. The document conveyed: It seems necessary to provide for mandatory control over the operations on the exchange of cryptocurrency for the currency of the Russian Federation or for foreign currency in an amount equal to or exceeding 600,000 rubles [~US$9,776] or the equivalent in foreign currency. Nonetheless, the government is still concerned about “the absence of a mechanism for establishing the owners of digital financial assets and persons responsible for the operation of digital financial asset systems.” It says the bill as written “will not allow countering the criminalization of this sphere and the use of the said assets for illegal purposes, as well as ensuring the protection of the corresponding property rights,” noting “the definitions of the concepts used in the draft law should be adjusted from a technical point of view.” Lastly, the government sees the need to correlate the provisions of other relevant bills: draft law no. 424632-7 “On amending part one, second and fourth of the Civil Code of the Russian Federation” and draft law no. 419090-7 “On alternative ways to attract investment (crowdfunding).” The response also calls for a “further study of the provisions of the draft law, taking into account the inexpediency of excessive regulation of civil and legal relations,” before concluding: The government of the Russian Federation supports the bill provided it is finalized for the second reading in accordance with the said observations. What do you think of the Russian government’s response and concerns? Let us know in the comments section below. Images courtesy of Shutterstock. Need to calculate your bitcoin holdings? Check our tools section. The post Russian Government Concerned Crypto Bill Inadequate in Many Ways 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. aXpire is excited to introduce its MatchBX product to the blockchain community. Coming in late Q2, MatchBX will allow blockchain-empowered freelance work, with individuals able to engage with each other or businesses to earn cryptocurrency (AXP) as a full time job. There has never been a better time to learn about cryptocurrency and look to engage in the aXpire community full time. MatchBX also offers a “preferred partnership” group of companies that have been hand picked and verified to serve as the best providers of a particular online service. For example, our latest addition, Kotoba, provides high quality website and white paper translation services, and users will be able to access this group at a special rate through MatchBX. In the background of this product we will run a different kind of spend analysis, demand prediction, which will drive additional preferred partners to our site. Think of it like surge demand on Uber, except without the associated price increases – we simply point partners towards early indicators of demand and the need for supply to fill any gaps. Not only with there not be traditional fees on the MatchBX platform, but also the minimal 1% fee charged per transaction will take the form of burned AXP, incentivizing early adoption. MatchBX is the latest addition to aXpire’s product suite, which includes Resolvr, a spend management tool. Both products are powered by aXpire’s native token, AXP. Advisors on the project include Roger Ver of Bitcoin.com, Shingo Lavine of Ethos and Gina Papush of QBE. To earn free AXP for signing up to the waiting list, go to www.matchbx.io. To find out more about aXpire, visit www.axpire.io Contact Email Address info@axpire.com Supporting Link www.matchbx.io 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: aXpire Introduces MatchBX to the Blockchain Community appeared first on Bitcoin News. View the full article

The Finnish government has revealed the number of taxpayers who owe taxes from bitcoin-related income. The country’s Tax Administration claims to have “different ways to combine information and identify people” who owe taxes from crypto profits, which are now “well over ten times higher than last year.” Also read: Russian Regulators Draft Law to Restrict Crypto Mining, Payments, and Token Sales Most Finns Have Not Paid Taxes on Crypto Gains Most Finns have not reported income to the country’s tax department from the sale of cryptocurrencies in previous years, Kauppalehti newspaper reported last week. This year, “the profits made by Finns from cryptocurrencies were well over ten times higher than last year,” the news outlet added. Senior Adviser from the Tax Administration’s Corporate Taxation Unit, Timo Puiro, detailed: The majority of people have previously failed to report their bitcoin-related income, which we have found when we compare the information we collect to the tax information reported…The Tax Administration has extensive access to information, for example, to payment information, and we have different ways to combine information and identify people. Metropolitan.fi elaborated, “the tax office has been given generous access to bank transfers and other data, which enables identifying people. By matching the transfers it is evident that in the past most citizens have not reported profits made with virtual currencies.” Finland, with its cold weather and low-cost nuclear-based power, is no stranger to bitcoin mining. Both Bitfury and the now-defunct Kncminer have operated mining farms in the country. Today many smaller miners are still in business there. Other well-established crypto businesses are also located in the country, such as Localbitcoins and leading Nordic bitcoin broker Prasos. Tax Department 30 Million Euros in the Hole This is not the first time Puiro spoke about identifying undeclared income by Finns. In December of last year, he said the government had been analyzing bitcoin wallets for this purpose. “We have analyzed more than 10,000 bitcoin wallets over several years, and in more than 500 cases we have found undeclared income which are taxable,” he emphasized at the time, adding that “Finland’s tax authority has identified bitcoin as one of the ‘high-risk focus areas’ and is prepared to redirect resources to ensure nothing falls through the gaps,” Bloomberg reported him describing. Furthermore, Puiro claimed that “in analytics related to bitcoin, Finland is in a leading position and we have consulted quite a lot with authorities from other countries.” While only 500 people were identified in December, Kauppalehti quoted the Tax Administration Office revealing last week that 3,300 people have now been identified as owing taxes from crypto-related transactions, adding: The aggregate capital gain of the 3,300 persons identified will be about 100 million euros, so the taxpayers’ share of the pot would be around 30 million euros. “Bitcoin gains are taxed as capital income in Finland…They are treated the same way as dividends, rent or other similar income,” Metropolitan.fi explained. “The tax percentage for capital income in Finland is 30% (in 2018) for sums under 30,000 euro and 34% in excess,” the publication added. Puiro also said last week that he hopes those who have made a profit on cryptocurrencies will voluntarily declare the income to the tax authority. He emphasized that if taxpayers fail to report income related to cryptocurrencies, “the criterion of criminal tax evasion may be fulfilled.” What do you think of Finland’s method of identifying crypto traders who owe taxes? Let us know in the comments section below. Images courtesy of Shutterstock. Need to calculate your bitcoin holdings? Check our tools section. The post Finland Has Identified Thousands of Bitcoin Traders Who Owe Taxes appeared first on Bitcoin News. View the full article

Iran’s central bank has issued a statement banning the country’s banks and financial institutions from dealing with cryptocurrencies such as bitcoin, citing money laundering and terrorism financing risks. However, the local crypto community in Iran believes that the ban will not affect them and some exchanges continue to operate normally. Also read: Russian Regulators Draft Law to Restrict Crypto Mining, Payments, and Token Sales Banned by Central Bank The Central Bank of Iran (CBI) has issued a statement on Monday banning the use of cryptocurrencies including bitcoin by banks and financial institutions. This announcement came “amid ongoing debate over how best to regulate the technology,” the AFP elaborated. According to the CBI, “the government’s money laundering committee had taken the decision in late December and it was now being put into effect,” the news outlet conveyed and quoted the central bank explaining: All cryptocurrencies have the capacity to be turned into a means for money laundering and financing terrorism and in general can be turned into a means for transferring criminals’ money. The central bank noted that banks and financial institutions in Iran were informed a few days ago, Mehr News reported. The ban comes at a tenuous time for the Iranian economy. Between now and May 12, both the EU and the US are expected to decide on a new round of economic sanctions targeting Tehran. This could restore the harsh international controls on Iran that were lifted in the 2015 nuclear treaty between Iran and six major powers, including the US. Effects of Crypto Community in Iran Monday’s announcement follows another prohibition recently announced by the central bank, banning foreign fiat currency exchanges. Mohammad-Javad Azari Jahromi. The Iranian government has mixed views on cryptocurrency, however. In February, the country’s telecom minister, Mohammad-Javad Azari Jahromi, tweeted the news that his ministry and the CBI are investigating the prospect of running their own initial coin offering (ICO) together. The resulting cryptocurrency would serve as “an experimental model for the country’s banking system,” he believes. While many people in Iran see cryptocurrencies as a way to overcome problems with international sanctions and the country’s banking system, there are also those who fear “the technology could undermine the country’s already weak banking system and exacerbate capital flight,” the AFP explained. “Iranians working in the fledgling private cryptocurrency market said the ban was unlikely to affect their operations,” the publication further described. A local crypto exchange Coinex has, however, halted activity on its platform in response to the central bank’s action, citing “we always want to make sure we comply with the law,” Hadi Nemati, who works for the exchange, told the news outlet. “But I have seen other crypto exchanges were still working normally,” he clarified, adding: This ruling referred directly to banks, financial institutions and currency exchangers that work with the central bank…In my opinion, it doesn’t include the general public — it’s not a total ban on cryptocurrencies. What do you think of the Iranian central bank’s action? Let us know in the comments section below. Images courtesy of Shutterstock and Mohammad-Javad Azari Jahromi. Need to calculate your bitcoin holdings? Check our tools section. The post Central Bank of Iran Bans Banks from Crypto appeared first on Bitcoin News. View the full article

No one likes missing the train. Of course, jumping on the wrong one is sure to delay the arrival even more. In today’s Bitcoin in Brief, we cover the latest attempts by big corporations to stay close to the crypto waters without really wetting their feet. Also, do you want to know how Cryptokitties have inspired a new Ebay-like platform for crypto enthusiasts? Also read: This Week in Bitcoin: Taxes, Forks, Pranks and Porn Another Badge of Patents While it is somewhat understandable when central banks want the blockchain but not bitcoin, it isn’t that clear why serious businesses make similar choices. Some of them prefer to shy away from the decentralized cryptocurrency, for which the awesome technology was actually invented. Getting on the crypto train has the power to lift stock prices. If it’s the wrong train, however, it could also postpone the arrival at the final destination. The blockchain technology is what makes bitcoin possible, but Walmart wants to use it without the cryptocurrency. The US retail giant has announced plans to employ blockchain in payment systems for vendors and customers. Two patents, filed by Walmart last year, were approved last week. The vendor payment sharing system will automatically process payments for products and services, the company explained. The system will also encrypt the transactions on a blockchain. The planners at Walmart may not have noticed, but processing encrypted payments on the bitcoin blockchain has been working flawlessly for many years. Much smaller businesses, like some companies in the Baltic states, have realized that already. Besides, instant conversion to fiat, offered by crypto payment providers, eliminates the risk that comes with the volatility in crypto markets. So, what’s so scary about using bitcoin and its blockchain? Tracing the Untraceable Realizing, probably, that bitcoin is here to stay, another giant, Amazon, has recently obtained a bitcoin tracking patent. The online retail behemoth wants to track multiple datastreams, combine the information, and sell the data. The patent explicitly mentions bitcoin. Amazon claims that every time a bitcoin transaction takes place, related data can be captured and correlated. That’s interesting! “Untraceable and anonymous” transactions have often been cited among the “mortal sins” of cryptocurrencies. Now, it turns out that a bitcoin address could be easily associated with a shipping address, an IP, an email, a bank account, or a social media profile by online retailers, internet providers and banks. The patent aims to make the presumably anonymous crypto information relevant and identifiable by collecting data from multiple sources and then finding the correlation with other transactions. As Tamebay reports, the authors specifically note that law enforcement may be interested in receiving data for bitcoin transactions by country. Here Comes a “Rare” Competitor Another global retailer, Ebay, may soon feel competition from a young fintech startup. Rare Bits brands itself as an Ebay-like platform for crypto enthusiasts who want to buy digital assets. The platform allows users to purchase, sell and search for virtual assets denominated in cryptocurrency. The startup launched just a couple of months ago but has since raised $6 million. As CNBC reports, some big names are on the investors list, including Spark Capital, First Round Capital, Twitch CEO Emmett Shear and founder and former CEO Justin Kan. Rare Bits is a matchmaker for sellers and buyers of crypto assets. For its services, the platform takes a cut of a developer’s revenue from the sale of their assets. The business idea has been inspired by the success of Cryptokitties, a game of buying and selling digital kittens with ethereum-based contracts. The company claims to have processed more than $100,000 in transactions during its first month. Unlike cryptocurrency exchanges or crypto wallet providers, Rare Bits doesn’t trade cryptocurrencies but crypto products. Its users are offered a catalogue of more than half a million such items. The platform focuses on consumers familiar with cryptocurrencies but its co-founder Amitt Mahajan says there is plenty of room for new people to get on board. “Imagine if a celebrity like Beyoncé or someone really well known were to release ten backstage passes on the blockchain… How many millions of people do you think would go out of their way to acquire one of those things?” What do you think about businesses trying to separate blockchain technologies from decentralized cryptocurrencies like bitcoin? Share your thoughts on the subject 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 Bitcoin in Brief Monday: Snatching Blockchain, Tracking Bitcoin appeared first on Bitcoin News. View the full article

After a Russian court enacted an immediate ban on the popular encrypted messaging service Telegram, the feisty company began to resist. Founder Pavel Durov insisted there were ways around the prohibition, including proxies and VPNs. It appears to have had some success even though millions of IP addresses have been blocked by the government. In response, some activists took to making paper airplanes (the company’s logo) in protest, flying them at the country’s notorious security agency’s headquarters, with some protesters being arrested. Mr. Durov took to his personal channel, urging Russians to fly their own paper airplanes in unison at a specific time. Also read: Telegram Uses Bitcoin in Effort to Thwart Russian Authorities Telegram Continues to Resist Russian Government Crackdown “For 7 days Russia has been trying to ban Telegram on its territory – with no luck so far,” the still defiant founder of the encrypted messaging service posted to his personal channel. “I’m thrilled we were able to survive under the most aggressive attempt of internet censorship in Russian history with almost 18 million IP addresses blocked.” Back on April 13, Dmitri S. Peskov, Kremlin spokesperson, stressed, “There is a certain legislation that demands certain data to be passed to certain services of the Russian Federation.” Judge Yulia Smolina agreed, ruling, “The ban on access to information will be in force until the [Federal Security Service’s] demands are met on providing keys for decrypting user messages.” Pussy Riot’s Maria Alyokhina Roskomnadzor, a censuring media body, made the most vigorous argument in asking the court to shutter Telegram. Last month, the company appealed before the Supreme Court over Russia’s Federal Security Service’s (FSB) 800,000 ruble fine. The FSB ordered Telegram to decrypt messages in accordance with relatively recent anti-terrorism laws. “We don’t do deals with marketers, data miners or government agencies. Since the day we launched in August 2013 we haven’t disclosed a single byte of our users’ private data to third parties,” a Telegram blog post insisted. Telegram was summarily banned, effective immediately. An initial response by Mr. Durov came also on his personal channel, explaining, “To support internet freedoms in Russia and elsewhere I started giving out bitcoin grants to individuals and companies who run socks5 proxies and VPN. I am happy to donate millions of dollars this year to this cause, and hope that other people will follow. I called this Digital Resistance – a decentralized movement standing for digital freedoms and progress globally.” Paper airplanes flown at Russia’s security agency in protest over country’s ban on Telegram. The Digital Resistance Gets Paper Wings Activists took to the streets roughly 4 days ago, placing themselves in front of the Federal Security Services’ headquarters, armed with colored paper. They then began to make paper airplanes in remembrance of the iconic Telegram logo. Not soon after, busses of uniformed police rolled up, and began dispersing the crowd, and wound up arresting Pussy Riot’s Maria Alyokhina. She was brought before a nearby magistrate, booked on blocking a public passageway, and released. In response, Mr. Durov insisted on April 22, “If you live in Russia and support free internet, fly a paper plane from your window at 7 PM local time today. Please collect the airplanes in your neighborhood an hour later – remember, today is Earth Day. My thanks to all the members of the #Digitalresistance movement. Keep up your great work setting up socks5-proxies and VPNs and spreading them among your Russian friends and relatives. They will be needed as the country descends into an era of full-scale internet censorship.” Do you think such protests make a difference? Share your thoughts in the comments section below. Images courtesy of Shutterstock. 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 Telegram Urges Paper Airplane Protest, Pussy Riot Activist Arrested 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. Decoin is proud to announce after months of build-up their Initial Coin Offering (ICO) is now officially live! Decoin is a decentralized coin and trading platform exchange that is set to disrupt the current norm in the industry. With plans for a state of the art exchange platform, a decentralized coin that will be utilised to share profits with investors, and D-TEP Credit Cards, the company is looking forward to a successful launch. Decoin’s CEO Shay Perry, when asked about the ICO launch, had this to say, “Decoin is a revolutionary idea that will change the cryptocurrency landscape for years to come. Our advisory team is one of the best in their industry, and their guiding words have been instrumental in the success of our company so far. We offer investors a share of the profits from our exchange, and a liquidity pool that will help secure the exchange from ICO to day-to-day use. We are excited, and cannot wait to see what the future will bring.” are excited, and cannot wait to see what the future will bring.” Decoin is an exciting new offering on the cryptocurrency market and there are a few reasons that you should look to invest in this ICO. The coin and exchange are designed to be highly scalable and secure while being built with commercial grade blockchain architecture. 97% of customer’s funds are stored in cold storage, while the remaining 3% is fully insured in case of attacks or losses. The company is offering full support to its investors with customized information for each investor to ensure they are comfortable within the crypto space. The revenue and profit sharing system with Decoin is unheard of in the industry, and each investor will enjoy a share of revenue and profits from everyday trading through the exchange. An annual 6.2% interest return will be awarded to all coin holders that stake their coins in Decoin’s online wallet. Easily access your profits using your own personal D-TEP credit card Decoin has secured a new way for their investors to use their Decoin’s, the D-TEP credit card. The company will be offering its investors five different credit cards that will match their investment level. These credit cards will allow holders to use Decoin and the profits that they gain from their investments on daily expenses much like today’s FIAT currencies. Nadav Moshe, the founder of Decoin has this to say about the launch, “ as a company we are excited, but as a visionary, I could not be more proud of the team and the work we have created. From the D-TEP credit card to our stable blockchain, the future is bright for our little company!” About Decoin: Decoin’s mission is to create a state of the art exchange platform for cryptocurrency users that will allow them to fully exploit their coin’s potential. As well, the company aims to create a user-friendly online customer service that will enable adoption of cryptocurrencies and exchanges to the masses. In Summer of 2018, D-TEP will launch in beta and the coin will be added to a number of exchanges. Fall of 2018 will see the launch of both the trading and exchange platforms. Finally, in Winter of 2018, the decentralized exchange platform will launch for users. More information on the ICO and the company itself, including whitepapers and vision, can be found on https://www.decoin.io Supporting Link https://www.decoin.io Contact Email Address support@DECOIN.io 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: Decentralized Exchange Decoin Launches Its Initial Coin Offering – Profit Sharing by Proof of Stake appeared first on Bitcoin News. View the full article

Nasdaq-listed technology firm Xunlei has become the subject of multiple class-action lawsuits from investors who purchased the company’s digital token, Linktoken. Xunlei is accused of misleading investors to disguise an initial coin offering (ICO) through which Linktoken was distributed. Also Read: Survey: 89% of Visa, Mastercard, Unionpay Users Know Crypto – 53% Have Purchased Xunlei CEO Rejects ICO Allegations The chief executive officer of Xunlei, Chen Lei, has rejected accusations that the company misled investors in order to illegally conduct an ICO in China. Xunlei’s Linktoken was distributed to users in exchange for a contribution of idle internet bandwidth, according to South China Morning Post. Chen Lei has claimed that the Linktoken distribution did not comprise an ICO due to the company not raising any funds through the issuance of the tokens, and due to Linktoken comprising a utility token that is not allowed to be traded. “By making a public offering, really you need to use it to raise money. We have never used a coin to raise any money at all, that’s never our intention,” Mr. Lei stated. In October 2017, Linktoken was launched in conjunction with other efforts by Xunlei to enter the booming blockchain industry. Whilst the distribution of the Linktoken appears to have been the catalyst for many weeks of sharp bullish action, the value of Xunlei’s stock has more than halved since posting 500% gains and setting record highs of $25 USD in November 2017. Xunlei’s Stock Plummets Since then, the price of Xunlei’s shares had plummeted to approximately $10 by early April, prompting some U.S.-based investors to seek action against the company for allegations of giving false and/or misleading statements regarding the legitimacy of the company’s cryptocurrency-related activities between October 2017 and January 2018. Among other allegations, investors have pointed to the requirement that they purchase hardware from Xunlei in order to share bandwidth and claim the digital tokens in return. Chen Lei has refuted the allegations, stating “We are a small capital company, so our stock price does fluctuate, but I don’t think there’s any basis for the lawsuit because we’re operating in China and it is the Chinese law and regulations that we need to observe,” adding that “the definition of [an] ICO has to be interpreted in the Chinese market.” Mr. Lei also indicated that Xunlei is currently in the process of hiring legal counsel to refute the allegations. Chen Lei Claims to Support Regulatory Action Against ICOs Chen Lei also criticized initial coin offerings and advocated for greater regulatory action to be taken against such, stating “ICOs are terrible, and give a bad name to blockchain technology. Governments should clamp down on these practices – a crackdown is the only way blockchain can rebuild its reputation.” Mr. Lei added: “We have been very straight on our business practices – we do not sell tokens.” China’s National Internet Finance Association (NIFA), a self-regulatory body established by the People’s Bank of China and authorized by China’s State Council, conducted an investigation into Xunlei’s token distribution, concluding in January the company had evaded regulations through conducting an “initial miner offering.” NIFA stated “In the case of Lianke issued by Xunlei, for example, the issuing company in effect substitutes Lianke for the duty to pay back project contributors with legal tender, making it essentially a financing activity and a form of disguised ICO. In addition, with frequent promotional activities and publishing of trading tutorials, Xunlei has lured many citizens without sound discernment into IMO activities.” Xunlei Shares Bounce After Blockchain Launch Despite the controversy and ongoing class-action lawsuits, Xunlie’s stock has bounced in recent days following the company’s announcement that its “Thunderchain” blockchain platform designed to facilitate the development of decentralized applications has been launched. Xunlei’s shares (XNET) are currently trading at $13.46, after retracing from highs of $14 on the 20th of April. Do you think that Xunlei will be successful in evading ICO status regarding its Linktoken issuance? Share your thoughts in the comments section below Images courtesy of Shutterstock, Wikipedia Want to create your own secure cold storage paper wallet? Check our tools section. The post Nasdaq-Listed Company Xunlei Faces Class-Action for Disguising ICO appeared first on Bitcoin News. View the full article

The current president and chief executive officer of the San Francisco Federal Reserve Bank, and the man expected to soon be the New York Federal Reserve Bank, John Williams, has rejected the suggestion that cryptocurrencies comprise currency. Also Read: Trading Sanctions Imposed on Tezos Co-Founder Amid FINRA Settlement New York Federal Reserve Nominee Rejects Cryptocurrencies as ‘Currencies’ Mr. Williams, the man nominated to head the New York Federal Reserve, has stated that “Cryptocurrency doesn’t pass the basic test of what a currency should be.” Mr. Williams asserted that currencies should comprise “basically something with a store of value,” also emphasizing the need for currencies to be “elastic” in order to adapt to a wide range of economic conditions and circumstance. Despite the criticisms, Mr. Williams failed to further elaborate on how cryptocurrencies fail to or could better fulfill the aforementioned monetary functions. The current San Francisco Federal Reserve president also stated that “The idea of the supply of currency and thinking about currency really belongs more in the sphere of government and central banks. My view is it’s really more of a promise of technology.” At least, Mr. Williams acknowledged that his extensive experience in central banking had left him “very biased” regarding issues pertaining to cryptocurrency. Mr. Williams also criticized “The setup [and] institutional arrangement around bitcoin and other cryptocurrencies,” claiming that the cryptocurrency sphere suffers from “problems with fraud, problems with money laundering, terror financing. There’s a lot of problems there,” Mr. Williams stated. Mr. Williams is expected to be appointed as the head of the New York Federal Reserve Bank in June when the current president, William Dudley, will step away from the position. U.S. Federal Reserve Officials Criticize Cryptocurrency Mr. Williams’ comments come following weeks of increasingly hostile rhetoric issued representatives of various federal reserve banks in the United States. At the start of April, Federal Reserve Board of Governor member, Lael Brainard, indicated that the institution is “monitoring is the extreme volatility evidenced by some cryptocurrencies.” For instance, Bitcoin rose over 1,000 percent in 2017 and has fallen sharply in recent months,” Mrs. Brainard said. “These markets may raise important investor and consumer protection issues, and some appear especially vulnerable to money-laundering concerns.” At the end of March, the president and chief executive officer of the Federal Reserve Bank of Atlanta, Raphael Bostic, rejected the proposition that cryptocurrencies comprise money. Mr. Bostic discouraged consumers from investing in the virtual currency markets, stating “Don’t do it. They are speculative markets. They are not currency. If you have money you really need, do not put it in these markets.’’ In January, the president of the Federal Reserve bank of Chicago, Charles Evans, stated that bitcoin is “Not money-like at the moment,” adding that cryptocurrency investors are “swimming with all the sharks in the world because of all the anonymity.’’ Do you think that cryptocurrencies fulfill the basic functions associated with ‘money’ or ‘currency’? Share your thoughts in the comments section below! Images courtesy of Shutterstock, Wikipedia At news.Bitcoin.com all comments containing links are automatically held up for moderation in the Disqus system. That means an editor has to take a look at the comment to approve it. This is due to the many, repetitive, spam and scam links people post under our articles. We do not censor any comment content based on politics or personal opinions. So, please be patient. Your comment will be published. The post Nominee to New York Federal Reserve Claims That Crypto Isn’t Currency appeared first on Bitcoin News. View the full article