Tag Archives: crypto

This Week in Crypto: BitPay Supports XRP German Bank Eyes 90000 Bitcoin Libra In Turmoil

This Week in Crypto: BitPay Supports XRP, German Bank Eyes $90,000 Bitcoin, Libra In Turmoil
                                  

This Week in Crypto: BitPay Supports XRP, German Bank Eyes $90,000 Bitcoin, Libra In Turmoil

This Week In Crypto is a weekly segment from the Live Coin Watch News team, providing readers with a fun, succinct, and pertinent summary of the most important Bitcoin-related events in the past seven days.

This Week in Crypto:

  • Crypto Crisis: PayPal Leaves Libra Association: Libra, the crypto project founded by Facebook, has just suffered a heavy blow according to a number of sources. Speaking to the Wall Street Journal on Friday afternoon, a spokesperson for the fintech giant, PayPal, said that the company has decided to “forgo further participation” in the project. Despite this, they added that PayPal continues to support Libra’s mission to democratize finance, and will thus keep its options open with Facebook in the future. This announcement comes shortly after sources to the Financial Times said that PayPal representatives did not make an appearance at a Libra-focused event in Washington.
  • Mastercard, Visa, Stripe Also Skeptical of Libra: In similar news, sources told Bloomberg that Visa, Mastercard, and Stripe are currently hesitant to sign the Libra Association’s inaugural charter in fear of angering regulators, most of which have expressed heavy reservations about crypto, the people said. Bloomberg’s sources added that the four payment giants’ executives believe that Facebook “oversold the extent to which regulators were comfortable with the project” and are fearful about the social media giant’s historical handling of data privacy.
  • Apple CEO Not Excited About Crypto Trend: In an interview with French publication Les Echos, Apple’s chief executive, Tim Cook, quipped that crypto assets are not something that Apple is pursuing at the moment. Cook argued that currency is something that should “stay in the hands of states.” The technology executive went on to say that he isn’t comfortable with “the idea of a private group setting up a competing currency”, seemingly referencing Facebook’s Libra.  Cook’s assertion that Apple will not have its own crypto asset comes after an Apple executive told CNN earlier this year that the technology behemoth is “watching cryptocurrency”, as they believe it has “interesting long-term potential”.
  • BitPay to Add XRP Support: Announced in a press release published on Wednesday morning, Atlanta-based crypto payments giant BitPay has partnered with Ripple’s developer initiative, Xpring, to enable XRP payments through “BitPay’s merchant processing and cross-border payments platform safely, securely, and compliantly.” This payment method will be activated by the end of the year. Speaking on the matter of the recent move, BitPay’s Sean Rolland remarked that XRP payments are important as they are “fast, cost-effective and scalable”. Ethan Beard, the Senior Vice President of Xpring, also expressed his excitement, quipping that this partnership with XRP will be “key in advancing the proliferation and adoption of XRP as a medium of exchange to help solve real-world problems.”
  • ConsenSys Acquires Ethereum Infrastructure Provider Infura: Ethereum development studio ConsenSys has just fully acquired Infura, an infrastructure provider that is believed to handle a large portion of the code requests that are on the Ethereum blockchain.
  • Ethereum “DeFi” DApp Bags $2.4 Million in Funding From Top Crypto VCs: Announced in a blog published at the turn of the month, InstaDApp, an Ethereum DeFi portal that aggregates major protocols “using a smart wallet layer and bridge contracts”, has bagged some $2.4 million in funding from investors like Coinbase Ventures, Pantera Capital, Robot Ventures, and IDEO Colab, prominent Silicon Valley investor Naval Ravikant, former Coinbase executive Balaji Srinivasan, “amongst many others”. Coupled with the funding, InstaDApp brings on Edward Moncada, CEO of Blockfolio and “Ming Ng, who collaborates closely with prominent projects including Handshake, Kyber, and Blockfolio,” to its advisory board.
  • German Bank Expects Bitcoin Price Appreciation: According to a recent report from Munich-based financial institution Bayerische Landesbank, Bitcoin’s block reward reduction in 2020 will give the cryptocurrency a  fair valuation of $90,000 per coin, implying that “the forthcoming halving effect has hardly been priced into the current Bitcoin price of approximately USD 8,000.”
  • Ripple Makes Large Acquisition: Last week, fintech upstart Ripple revealed that it had acquired Algrim, a cryptocurrency trading firm based in the Nordic country. This move marks the company’s latest expansion into Europe. According to the announcement, this new team, which formerly focused on developing a crypto trading platform, will be focused on leveraging their skills to develop Ripple’s On-Demand Liquidity product, which uses the XRP token as a means to settle and process cross-border payments.
  •  

Article Produced By
Nick Chong

Nick has been enamored with cryptocurrencies since finding out about them in 2013. He now reports crypto- and blockchain-related news for a number of leading outlets.

https://news.livecoinwatch.com/week-crypto-bitpay-xrp-german-bank-90000-bitcoin-libra/

Thomas ClaimCo.in

The Bank of Google Wants Your Spending Data

The Bank of Google Wants Your Spending Data

                                   

The multinational technology giant Google has plans to get into the banking industry according to multiple reports that reveal the firm intends to work with Stanford Federal Credit Union and Citigroup. However, analysts assert that Google is not jumping into banking for revenue purposes and the move is simply an acquisition of more customer data.

Google Bank

One of the ‘Big Four’ technology companies, Google LLC, plans to launch checking accounts through a partnership with Citigroup, Stanford Federal Credit Union, and a number of other financial partners. The secret project has a code name called ‘Cache,’ according to sources stemming from the Wall Street Journal. However, people using the Google-backed checking accounts might not know the internet-related services company is behind the financial products. The checking accounts will still feature branding from the likes of financial incumbents such as Citibank and Google will only work behind the scenes. Google executive

Caesar Sengupta explained:

Our approach is going to be to partner deeply with banks and the financial system — It may be the slightly longer path, but it’s more sustainable.

The move by Google follows the recent partnership between Apple and Goldman Sachs that produced the Apple Card product. Many speculators believe Google is planning to enter the fray of banking in order to stay competitive with the other three heavyweights Facebook, Amazon, and Apple. In a note to clients this week, Wells Fargo’s analyst Brian Fitzgerald said that Google is more interested in obtaining data. “Google is likely entering into these partnerships to increase its insights into consumer purchase behavior and consumer finances more broadly,” Fitzgerald said. At the moment, a lot of the giant tech firms are laser-focused on financial technology and Facebook’s Calibra project is a testament to the trend. “Google is primarily focused on data to feed its core ad business, and less so on acting as a full-fledged bank,” CB Insights senior intelligence analyst Arieh Levi remarked.

Another Extension of Surveillance Capitalism

Since the news went viral the ‘Bank of Google’ discussion has a lot of people wondering if Google will be privy to everyone’s finance behavior. Combing personal data like spending habits is just another extension of surveillance capitalism in the opinion of many skeptics. But Google believes the strategy is good for the internet in general. “If we can help more people do more stuff in a digital way online, it’s good for the internet and good for us,” Sengupta stressed to the Wall Street Journal. “Of course they plan to leave the nitty-gritty details to the traditional finance folks. All Google is really interested in is your financial data and for that I’m sure they’ll be willing to slap a kickass GUI and possibly a bit of value add as far as fees and rates are concerned,” Mati Greenspan, senior market analyst at Etoro explained in a note to investors about Google announcing “intentions to get deeper into financial services.”

”Facebook, Google, Amazon, Apple, they all just want to be like Tencent who’s been dominating Chinese payments for nearly a decade. In fact, the earnings report from Tencent today seemed to contain just as much valuable insight into the Chinese consumer than it did the actual company,” Greenspan added. Many people believe massive tech firms like Apple and Google becoming financial behemoths is not out of the question, despite the kickback these companies receive from governments. However, the retail giant Walmart had its banking intentions stopped by financial institutions lobbying politicians. A few years later, Walmart is now exploring cryptocurrency concepts. To digital currency advocates, the Google checking account news is just one more sign of the surveillance state growing larger, which in turn could push people toward decentralized cryptocurrencies.

Article Produced By
Jamie Redman

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.

https://news.bitcoin.com/the-bank-of-google-wants-your-spending-data/

Thomas ClaimCo.in

Cashaa Announces US Dollar Bank Accounts for Cryptocurrency Firms

Cashaa Announces U.S. Dollar Bank Accounts for Cryptocurrency Firms

                              

Bitcoin banking platform Cashaa will soon offer U.S. dollar bank accounts for cryptocurrency-focused businesses, except those operating in sanctioned countries. 

Cashaa offers banking services like International Bank Account Number (IBAN) accounts, international SWIFT transfers for fiat and credit card processing for cryptocurrency-based businesses, which often struggle to receive these services from traditional banks. It also enables businesses to accept cryptocurrencies and withdraw funds in fiat, including British pounds, euros and Indian rupees. Beginning November 25, 2019, clients based in the U.S. will be able to apply for USD accounts.

These accounts will include automated clearing house and SWIFT access without limits and incur a one-time setup fee of 250,000 CAS, Cashaa’s native token (about $1,500 at press time). Cashaa has integrated with New York-based Metropolitan Commercial Bank for provision of this service. As with Cashaa’s U.K. accounts, U.S. dollar account holders will have access to multisig wallet and exchange functionality for bitcoin purchases.  

Banking the Unbanked 

Cashaa’s new service is targeted at cryptocurrency businesses who encounter difficulty opening a corporate account in the U.S. As noted above, traditional banks have often shied away from the industry for reasons that range from regulatory uncertainty to the volatile nature of crypto assets. In some cases, cryptocurrency-based businesses have had their accounts closed. In a press release on the service, Cashaa noted that it formed a “pre-compliance team” in September 2019 following Barclays decision to stop serving Coinbase. Speaking on their rationale, Janina Lowisz, the co-founder and vice president of marketing, believes her company could help serve the “underserved businesses building new technologies.”

“Our goal is to create a hassle-free experience for all businesses who are building new technologies and business models,” Lowisz said in the release. “The addition of U.S. Dollar accounts is an important milestone for the crypto community and us. We want to thank our community and all businesses so far who have trusted Cashaa to solve their banking problems.” In April 2019, Cashaa began supporting cryptocurrency purchases with major debit and credit cards. In October 2019, the company enabled bitcoin purchasing options for customers in India using fiat currency.

Article Produced By
Jimmy Aki

Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.

https://bitcoinmagazine.com/articles/cashaa-announces-u-s-dollar-bank-accounts-for-cryptocurrency-firms

Thomas ClaimCo.in

A Wyoming loophole’ to Carry Out Crypto Transactions Without BitLicense in New York

A ‘Wyoming loophole’ to Carry Out Crypto Transactions Without BitLicense in New York

                               Wyoming

There may be a new way of by-passing the tough New York laws to carry out crypto-related transactions in the world’s capital without acquiring a BitLicense, a crypto license developed by the New York Department of Financial Services (NYDFS) in 2014.

Wyoming offers crypto companies a loophole

According to a report from members of the committee that drafted laws to govern the crypto banking sector in Wyoming, the state will have the power to charter Special Purpose Depository Institutions (SPDIs), a reserve bank that can act as a crypto custodian. Now, these SPDIs open a loophole that may well allow banks to open branches in NY and carry out their business without the need for a BitLicense.

Cool, right?

The loophole first came to light through a tweet sent out by Caitlin Long, member of the Wyoming blockchain taskforce, claiming a solution to the long-standing BitLicense problem. A number of companies have come out publicly rebuking the methods employed by the NYDFS before offering the license. With only 18 BitLicenses dished out since the launch half a decade ago, a multitude of crypto businesses has been locked out of the state during the period. Chris Land, general counsel of the Wyoming Division of Banking, spoke during the Coindesk Invest conference held in New York assuring companies a Wyoming SPDI can

start operations in the city.

“We are fairly confident that the Wyoming SPDI will be able to operate in New York without a BitLicense.”

How exactly do you bypass NYDFS BitLicense?

According to the thread of tweets by Caitlin, the SPDI license from Wyoming offers the banks a state charter which in turn allows operation in about 42 states across the U.S without need for additional licenses. According to Federal law, state-chartered banks of other states, similar to national banks, should have similar laws applying to them and exempted from them.

For instance, in our case, the NY law exempts national banking institutions from acquiring a BitLicense which means most certainly a state-chartered bank (such as Wyoming’s SPDIs) would be exempt from acquiring the license before setting up a business. However, for some states, NY included you will need to open a branch in the state before starting operations. With the cryptocurrency industry growing as more companies and SMEs integrate these innovative solutions to their business systems, and now an opportunity presenting itself, it is only a matter of time before firms take on the loophole. We’ll wait and see.

Article Produced By
Lujan Odera

Been in the field since 2015 and he still love everything blockchain and crypto! FC Barcelona fan. Author and journalist.

https://coingape.com/wyoming-loophole-crypto-transactions-without-bitlicense/

Thomas ClaimCo.in

Three Fronts in the Global Digital Currency Wars

Three Fronts in the Global Digital Currency Wars

                                 

Jeremy Allaire is co-founder, CEO and chairman of Circle, a global financial services company that provides a platform for individuals, institutions and entrepreneurs to build businesses, invest and raise capital with open crypto technologies.

The views expressed here are his own.

The past several months have brought dramatic new technology, market and regulatory developments in the cryptocurrency sector, with major global technology and state actors pushing forward digital currency initiatives. These new initiatives are forcing global leaders everywhere to ask what the role of digital money will be in the next decade, and are ultimately a proxy for shifts in the broader political and economic landscape that are going to re-shape the future of the international monetary system.

Deep, fundamental digitalization of the economic system is now well underway as blockchain infrastructure moves from the fringe and early adopters and into the spotlight of major nation-state actors. Synthetic, crypto-powered central bank money tokens, and the introduction of smart contracts that can represent and tokenize other real-world financial assets and contracts are on the rise around the world. These rapid changes are leading regulators everywhere to grapple with an economic system that is beginning to mirror the open, global and connected internet of information and communications.

At the foundation of these shifts is the rapid development of public blockchain infrastructures, such as ethereum, which allow market participants to issue cryptocurrency tokens representing fiat currencies and other financial assets. This “base layer” of trusted computing, record-keeping and transaction processing can be compared to the base layer of TCP/IP and HTTP, protocols that allowed the vast global internet to come into everyday use. There are now several competing approaches to building a new financial system on this infrastructure.

1. Open finance

The first is represented by crypto-native ecosystem players, including Circle and Coinbase, who are building fiat-backed stablecoins such as USD Coin (USDC) on top of public blockchains. These developments are enabling a broad base of developers and companies to build higher-level financial constructs such as decentralized lending and credit markets, payments services and tools for trade finance. Regulated by existing payments banking rules in the US and EU, these private market-based approaches are growing rapidly and help to form a pillar of the open finance movement.

2. Government-run

The second approach is best represented by China’s forthcoming Digital Currency Electronic Payment (DCEP) infrastructure, which aims to build an entirely controlled, centralized and permissioned infrastructure for a digital currency version of the Chinese RMB. While likely appropriate for the Chinese economic and political model, this approach flies in the face of the open internet ethos and is not likely to receive much of an enthusiastic response from the broader internet development community.

3. Private consortia

The third approach, anchored in the proposed Libra Association and Libra Reserve Currency, attempts to build an “over the top” synthetic global digital currency. Like China’s effort, the Facebook proposal creates a centralized, permissioned infrastructure for this payment system, which will radically limit how open and accessible the infrastructure becomes for developers and companies wanting to build on top of it.

Competing worldviews

In each of these approaches, we can extrapolate a fundamental worldview. With the first, do we want an open financial system built on the public internet that allows value to move freely and easily anywhere in the world with strong privacy protection, one that enables people and companies to build financial arrangements in code, enforced by public blockchain infrastructure and enabling commerce and transaction arrangements between people everywhere? In short, do we want a global financial system built in the image of the internet?

Or, if the world embraces the Chinese approach, do we want a world with tightly controlled access to innovation in the financial system, with extremely tight controls on where capital moves and who can access the system? Such a system may enhance efficiency and global reach for the Chinese RMB. But will it mirror the tightly controlled internet that exists in China today? Will it be offered on equal terms to people and companies globally who seek to transact with China?

The worldview put forward by Facebook and Libra suggests a new global financial system that is controlled and run by the largest private companies in the world. And rather than building on existing sovereign money, the Facebook construct seeks to create a new global currency that stands above the state. Do we want a new global financial system controlled by a few private companies, where permission to participate and innovate is mediated on a closed infrastructure?

The largest governments in the world, especially those responsible for major global trade currencies, must now grapple with the innovation of public cryptocurrencies that have the reach of the global internet. The choices they face, and the decisions that are ultimately made by relevant policymakers, will have a dramatic impact on what our future global economic system looks like. Meanwhile, while governments study and debate these topics, bit by bit and block by block, technical innovators all around the world are using crypto to rebuild the global economic system in front of our eyes in a marvel of human ingenuity.

Article Produced By
Jeremy Allaire

Jeremy Allaire is co-founder, CEO and chairman of Circle, a global financial services company that provides a platform for individuals, institutions and entrepreneurs to build businesses, invest and raise capital with open crypto technologies. He has co-founded and led multiple global internet technology firms with thousands of employees, hundreds of millions of consumers served, and multiple successful public offerings on NASDAQ.

https://www.coindesk.com/three-fronts-in-the-global-digital-currency-wars

Thomas ClaimCo.in

Why You Can’t Be Anonymous Using Crypto

Why You Can’t Be Anonymous Using Crypto

                                     

Most people associate blockchain and Bitcoin with anonymity and imagine that they can perform transactions online without being detected. But this couldn’t be farther from the truth, as aside from a few altcoins that have privacy features, Bitcoin and most cryptos aren’t actually anonymous.

How Cryptos Can Be Traced

Every crypto transaction has inputs and outputs that are addresses from which the crypto is sent and received, respectively. These addresses are encrypted through a private key, and cryptos such as Bitcoin or Ethereum can only be moved from their wallet using the private key from the address. The outputs are the addresses that receive the crypto, and it is referred to as the public address, which consists of a long string of numbers and letters that do not have any identifiable information to connect you to your address or its associated wallet. The public address acts as your pseudonym on the blockchain and allows other addresses to interact with you.

As these addresses do not give away any personal information, most people believe that they cannot be identified on the blockchain. Even if there is no real name attached to bitcoin transactions, they are pseudo-anonymous at best, as there are many ways of identifying the owner.

In some sense, it is true that bitcoin is more anonymous compared to other payment methods that are run by centralized third-parties, as your bitcoin funds and transactions have no connection to your real name, your email, or your physical address, just random numbers and characters. But actual cash transactions are more anonymous than crypto because all of your transactions are visible to the entire blockchain network. Most blockchains are public ledgers, which means that anyone can look into your transaction history with a certain crypto, and also know how much you hold in your wallet. You would have to create a new wallet after each transaction to keep your anonymity. But, no such measure would be enough to deter someone from finding out your identity.

All Your Activity Is Publicly Available

After you make a transaction with someone, they will have your public address and, using it, they can search your past trading activity, as well as trace all your future transactions. Most cryptocurrencies have publicly-available transactions, and those with the advanced software and necessary tech skills would be able to trace the transactions back to the original source. The availability of blockchain analysis software that is sophisticated enough to track wallets and trace transactions have made it easier for law enforcement agencies to find criminals and drug lords who thought that using Bitcoin’s public ledger would keep their activity anonymous.

Node Connections

Other ways of identification involve finding out your IP address. This can be done by connecting multiple nodes and tracking the source of a transaction. Attackers can intercept your transaction by connecting to all the nodes on the blockchain network. Then, they wait to see which node is the first to transmit a transaction that will be identified as the source of the transaction. Thankfully, there are some methods that you can use to keep your activity private when using cryptos online, such as using mixers. Mixing services jumble up crypto addresses together and send them out randomly, so that no one can link the private and public addresses.

Today, you have a lot of options, as you can choose Bitcoin Mixer to be sure that, when you make a transaction, you can stay calm because no one is spying on you. Also, if you are looking to increase your privacy when using ETH, you can opt for Ethereum Mixer, as it works automatically and without any human assistance.

Article Produced By
Lavinia C.

https://theccpress.com/why-you-cant-be-anonymous-using-crypto/

Thomas ClaimCo.in

US Congress Continues to Investigate Cryptocurrencies Deep Divisions Revealed

US Congress Continues to Investigate Cryptocurrencies, Deep Divisions Revealed

                                

 

Members of the United States Congress are again openly addressing the cryptocurrency revolution

by holding committee hearings and researching its potential impact on the current financial system. Although there is significant division among them, there is no doubt that America’s legislators are becoming notably concerned about the changes blockchain technology is introducing. There is now little doubt that the country will soon see significant legislative and regulatory action addressing this new asset class.

This past week Facebook CEO Mark Zuckerberg testified before the House Financial Services Committee where he was questioned on his company’s plan to create the Libra digital currency. To put it mildly, the mood of the committee was not friendly. Most members expressed grave concerns over Libra’s potential use in illegal activities as well as its threat to the hegemony of the U.S. dollar in global economics. Only a handful of committee members discussed the technology behind Libra, yet there was no doubt that most of them understood the simple fact that emerging digital currencies are designed to operate outside of the traditional financial space. Brad Sherman (D-CA) was perhaps most vocal about this issue. The long-time critic of all things crypto railed against all things crypto, insisting that these assets are most useful for criminals, and do nothing to help the global poor and unbanked. 

Representative Patrick McHenry (R-NC) opposes Sherman’s position on cryptocurrency. In an interview on October 22nd McHenry spoke well of crypto use. Specifically he noted that Bitcoin “has enormous long term value” and that the U.S. government should encourage development in the blockchain space. To that end, he is reintroducing the Financial Services Innovation Act, which will enable fintech startups and development teams to bypass many outdated regulations when experimenting with digital currencies and blockchain assets. He first introduced this bill in 2016. Warren Davidson (R-OH) also supports crypto innovation. He has recommended that Facebook adopt Bitcoin, or another blockchain-based platform, rather than Libra. Davidson supports greater involvement by U.S. lawmakers and regulators in crypto development, and has called for leaders to take greater steps to educate themselves on the technology behind the various platforms. 

After the recent hearings on Libra, moves by the Congress on this issue are all but certain. Simply put, American lawmakers have no choice. Facebook and the Libra Association are firmly determined to launch their currency, and are unlikely to allow a few angry congressmen get in their way. Libra, however, is merely the tip of the iceberg. Many other large American businesses are also moving into the space. For example, Walmart is now using VeChain, Iota is forging partnerships with several U.S. cities, and many banks are embracing Ripple. If Congress has any hope of enacting effective regulation it had better act quickly. 

Although the present mood in Congress is strongly anti-crypto, what will happen once real legislation starts emerging is anyone’s guess. Knowing that this is a movement that cannot be stopped, and that this technology will bring incredible benefits to those that navigate it properly, more supporters are likely to emerge. Nevertheless, blockchain assets are on track to disrupt virtually every sector within the American economy. With so much at stake, the fight over how to adjust to such a revolutionary change could be very contentious. Mark Zuckerberg’s testimony was a clear indicator that, more than ever, America’s lawmakers are recognizing that the age of digital currencies has arrived. Addressing the myriad issues that will come with it will be no easy task. What is without question is that ignoring the changes underway is no longer an option.

Article Produced By
Trevor Smith

https://www.crypto-news.net/us-congress-continues-to-investigate-cryptocurrencies-deep-divisions-revealed/

Thomas ClaimCo.in

Top 3 reasons why governments demand regulation of cryptocurrency

Top 3 reasons why governments demand regulation of cryptocurrency

                              

Whenever we hear about another government drafting a regulation for cryptocurrencies,

we can’t help but smirk a little bit at the hypocrisy of politicians and their approach to these digital assets. The reason why so many people laugh at the sight of new crypto regulation is due to the direct contradiction of such a law with an already established understanding of cryptocurrencies in the political world.

For example, dozens of governments have not recognized cryptocurrencies as money, but treat it as such. Most try to classify it under securities but they can’t find definitive connections between the already established understanding of security and a crypto coin. Therefore, they simply push it into the class of hobbyist assets or something completely harmless, and then regulate that sector to oblivion. This mostly causes collateral damage to industries that were already classified under this specific sector, which is why the negativity towards cryptos tends to grow institutionally as well as on a retail level. But why regulate cryptocurrencies? What are these digital coins which are ultimately nothing but a line of code have so dangerous about them that governments want to keep under control? Well, let’s find that out through this article.

Siphoning tax dollars into the economy

The first reason that causes cryptocurrency regulation is the potential tax that governments can put on the asset. Understanding it is quite easy. You can’t tax something which is not recognized as something of value, and in order to recognize it as something of value, you need to include it somewhere in the law, thus we get cryptocurrency regulations. Almost every draft you can take a look at mentions cryptocurrencies as some kind of asset class, which would then determine the level of taxation. The most common tax is, of course, the capital gain tax, which is calculated through the profit of exchanging these assets. The most common industry we can find this tax is a foreign exchange, which draws quite a lot of parallels on whether or not cryptos are money.

A sub-reason of taxes is to somehow minimize the cases of tax evasion from the population. You see, there are specific cryptocurrencies around the world that are designed to completely hide the identity of their owner, before, during and after the process of purchasing them. This was a very popular method for Australia real money pokie games as they would encourage their customers to deposit fiat currencies, exchange them for local tokens, spend a set amount of them on the platform and then they would be allowed to withdraw these funds as cryptocurrencies. Even if the deposit on these platforms would be recognized by a government authority, they would classify the lack of withdrawals as money lost while playing, thus not follow up on the taxation of the individual.

However, through regulation, governments would pretty much force citizens to use traceable cryptocurrencies on such platforms, or prohibit these platforms from allowing crypto withdrawals. Nobody can truly say they’ve worked like a charm, as the end goal was pretty much the same. The amount of taxes being added to the treasury each month did not increase nor decrease. Why? Because the fact that people avoided taxes on cryptocurrencies does not mean that they avoided taxes overall. The cryptos they’d get would still circulate in the local economy, thus still be funneled into the national treasury.

Security and control

The second argument that most governments put forward when installing a crypto regulation that it’s dangerous for the safety of the nation. Most of the argument revolves around the financing of terrorist groups that would plan on inflicting some damage to the country. However, it has been confirmed multiple times that cryptocurrencies are not being funneled towards criminals and that most of the crimes as well as terror attacks are still being funded through fiat money. Why? Because it’s very easy to smuggle them outside of the country as they’re mostly physical items and can’t truly be controlled by the government 100% of the time.

However, in terms of security and control, most people tend to agree that it’s worth having a regulation for. But that’s the only part about the legislation that they agree with. Everything else that requires the payment of taxes and identification is out of boundaries. But the fact is that security requires some kind of sacrifice. And in this case, that sacrifice is supposed to be privacy, which some people are not ready to give up.

Study and analysis

The next reason is the study and analysis of this new industry. We need to recognize the fact that cryptocurrencies were introduced in the modern financial market very quickly. So quickly in fact that even the developers themselves had not studied the technology completely. Therefore, the only plausible decision from governments was to either ban these new digital assets that people were buying up, or to regulate them to an extent where they buy some time to study them.

Unfortunately, the first time cryptocurrencies became available in the market, most governments decided to go ahead with a permanent ban, thus hindering the development of the assets. But this development was a hindrance to the value rather than the technical side, but then it caused collateral damage in a sense where developers could not fund their new projects anymore. So, in retrospect, the banning or strict regulation of cryptocurrencies as a means to study them hindered those very same studies as actual local applications could not have been taken into account, thus losing priceless data.

Should there even be regulation?

Cryptocurrencies should be regulated and every crypto fan who is truly aware of how they work will agree to this. The ultimate goal of Bitcoin and pretty much every altcoin is to either replace fiat money or become a worthwhile alternative. In order to do so, it needs to be kept in check so that it loses some of its volatility. Otherwise, it’s simply too risky for large-scale transactions and usage as millions if not billions could be lost in just a few hours from a small price movement.

Article Produced By
Bitcoin Warrior

https://bitcoinwarrior.net/2019/10/top-3-reasons-why-governments-demand-regulation-of-cryptocurrency/

Thomas ClaimCo.in

FATF Begins Inspection on Anti-Money Laundering Measures at Japanese Entities on October 28

FATF Begins Inspection on Anti-Money Laundering Measures at Japanese Entities on October 28

                                   

The Financial Action Task Force (FATF), an international organization dedicated to anti-money laundering measures,

began undertaking an assessment at the Japanese government and financial institutions in Tokyo on October 28. It was reported that companies that operate cryptocurrency exchanges are also subject to evaluation, with the FATF conducting interviews at the Japanese government and approximately 20 financial institutions over the next three weeks. The results of the assessment will be made public in summer 2020. The FATF will investigate banks, securities companies, and insurance companies to see whether they have sufficient measures in place to confirm customer identity, report transactions that may be money laundering, and prevent fraudulent remittances. Additionally, the organization will investigate cryptocurrency exchange operators as managers of new financial assets to see whether their measures are sufficient to deter exploitation of these assets by criminal organizations. This marks the first time that Japanese cryptocurrency exchange operators will be subject to an evaluation by the FATF.

A previous audit was conducted in Japan in 2008, however the entirety of financial institutions in Japan received a harsh assessment, requesting improvements for 25 out of the 49 audited items for anti-money laundering and counter-terrorism financing (10 items demonstrated insufficient countermeasures and 15 items demonstrated only partial implementation of countermeasures). In the past, only 5 countries out of the 23 that underwent assessment by the FATF assessments required strict monitoring with regular follow-ups: United Kingdom, Spain, Italy, Portugal, and Israel. However, this does not imply that the countermeasures at Japanese institutions are in an exemplary state.

The FATF’s Recommendations carry significant weight and apply to over 190 countries and regions around the world. Should Japan be assessed as a “high-risk” or “uncooperative” country by the FATF, financial institutions in other countries may apply closer scrutiny when working with Japan’s financial institutions, leading to delayed trade or avoiding deals with Japan altogether. The Japanese government may be undertaking this recent assessment to regain trust and dispel concerns in international trade matters.

Cryptocurrency service providers in Japan have already begun introducing a registration system for registering as an operator with the Financial Services Agency (FSA), however it is thought that the regulating agency will further evaluate the initiatives of cryptocurrency exchange operators in Japan and propose measures for improvement. There are 20 companies registered with the FSA as cryptocurrency exchange operators, but companies that are not under the umbrella of major listed corporations and thus do not have abundant capital or human resources are mixed among those registered. Going forward, it can be expected that the fate of these registered companies will be split between those with resources capable of addressing requested operational improvements and those unable to keep up.

Article Produced By
FISCO

https://bitcoinwarrior.net/2019/10/fatf-begins-inspection-on-anti-money-laundering-measures-at-japanese-entities-on-october-28/

Thomas ClaimCo.in

This week in crypto: All the important developments in crypto space

This week in crypto: All the important developments in crypto space
                                 

The Bitcoin ecosystem continues to advance at a steady pace

as it becomes more mature and integrated into everyday life. This past week has seen a flurry of activity, just like every week before it, and every step is leading to a time when cryptocurrency is fully accepted as an alternative to fiat. While there is still a lot of controversy, such as that centered on Facebook and Binance, the overall progress looks promising.

Social media platform Kik was on its last breath, having to face a lawsuit by the U.S. Securities and Exchange Commission (SEC). Ready to throw in the towel on the platform so it could fight to save its Kin token, Kik has now found a new home and is going to be relaunched by MediaLab. Coming soon, according to the new owner, is a bigger and better messaging platform that could, eventually, offer some sort of monetizing feature. Satoshi Nakamoto has said it all along and regulators are now reinforcing his assertion. Cryptocurrency must be seen as a solution that operates within the framework of financial regulations. Satoshi designed Bitcoin to work in tandem with fiat and its guidelines, not above or around them, and the U.S. Financial Crimes Enforcement Network (FinCEN) agrees. It has said that all companies in the crypto space are prohibited from allowing complete anonymity and that they must comply with financial laws regarding anti-money-laundering policies. If they don’t, they could be held legally accountable.

New York is considering making changes to its BitLicense program. The state’s Department of Financial Services introduced the program several years ago as a way to ensure crypto companies operating in New York are legitimate and somewhat regulated, but the agency is looking to update its framework. The DFS is calling on crypto companies, as well as others in the industry, to provide input on how the process is working and what needs to be improved. The OKCoin crypto exchange is making strides in Europe. It has announced updates to its platform across the European Union and now includes a new payment channel for the Single Euro Payments Area (SEPA). This allows those in the EU to make more efficient deposits and withdrawals in euros and, to celebrate the move, OKCoin dropped all fees for qualifying transactions for a six-month period. In addition, corporate users have been authorized to make larger deposits and withdrawals through the SEPA channel. For all users, the new service means cheaper transactions.

The president of Crypto Capital, Ivan Manuel Molina, was arrested Thursday on charges of money laundering. The former banking partner to the Bitfinex exchange has been under fire after it allegedly “lost” around $850 million of the exchange’s money and the arrest could shed light on exactly what has transpired. It also means that Bitfinex, Bittrex, Kraken and BitMEX need to watch their backs. Investors of the Telegram Open Network and the Gram token introduced by Telegram are standing by their investments. When Telegram came under fire by the SEC, they had the ability to try to reclaim their investments, but have decided to let everything play out and see if Telegram can convince the commission that its Gram is not a security. There’s also the issue with Facebook’s Libra stablecoin. However, this saga is so big and changes so often that it needs its own space.

Article Produced By
Noah Bradley

https://coingeek.com/this-week-in-crypto-all-the-important-developments-in-crypto-space/

Thomas ClaimCo.in