Category Archives: Altcoins

Auto Added by WPeMatico

Law Professor’s Paper Targets US Regulatory Confusion over Crypto

Law Professor's Paper Targets US Regulatory Confusion over Crypto

A professor from the University of Arkansas School of Law has written a paper essentially claiming that US regulators are in a state of confusion over exactly what cryptocurrency is.

The article, entitled ‘U.S. Law: Crypto is Money, Property, a Commodity, and a Security, all at the Same Time’, written by professor Carol Goforth for the Journal of Financial Transformation, has recently been published in the University of Oxford’s Business Law blog.

The article is raising eyebrows as it outlines what many some academics and lawmakers are already thinking across the US, that the SEC really doesn’t know how to proceed over cryptocurrency legislation as the commission can’t really classify it.

Goforth claims that part of the problem which prevents correct legislation is the fact that a broad definition does not cover the requirements of the four entities in US government currently dealing with cryptocurrency. The Internal Revenue Service (IRS) defines cryptocurrency assets as property, the Department of Treasury through its Financial Crimes Enforcement Network (FinCEN) “very much like money”, the Commodity Futures Trading Commission (CFTC) as commodities, while the Securities and Exchange Commission (SEC) lumps cryptocurrency assets into its “securities” basket.

Here lies the problem claims Goforth; this diverse set of contradictory definitions make a broader definition impossible, in fact as she points out cryptocurrencies also have other functions not even covered by these four definitions.

Putting aside these four bodies, jurisdictions of individual US states are also bringing in their own guidelines regarding virtual assets, adding even more uncertainty to an already confused area, claims Goforth. Registering an exchange in New York, for example, will require a different process for completing the same activity in, for example, California.

The professor explains that in view of such a diversity of cryptocurrency functions a monolithic approach to defining and therefore regulating virtual currency should be abandoned to make way for far more nuanced thinking by government agencies; an approach which examines the functionality of the crypto asset along with the requirements of the agency issuing guidelines for its use.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Law Professor’s Paper Targets US Regulatory Confusion over Crypto appeared first on BitcoinNews.com.

Dutch Province of Limburg Launches Community Crypto

Dutch Province of Limburg Launches Community Crypto

Dutch cryptocurrency platform Studio/Belfius has joined with payment platform LimbU in Limburg in the South of Holland to create its own cryptocurrency for promoting community spirit.

The initiators of the project suggest that the aim is to encourage sustainability, community support, promotion of local produce, and the creation of supply chains throughout Limburg’s 10 provincial regions.

Limburg is the southernmost of 12 provinces of the Netherlands. It is in the southeastern part of the country, stretched out from the north, touching the province of Gelderland, to the south, where it internationally borders Belgium.

The new digital currency, the “Limbu” has no fiat support but is transferable to users’ wallets throughout the province after locals complete a range of civically responsible activities such as; garbage collection, doing small repairs, giving blood, collecting clothes for charity, undergoing first aid training or composting organic waste.

The aim is to also encourage companies, public authorities, and associations to contribute through the scheme towards building a “greener, more welcoming Limburg.” The project’s member Wim Van De Putte explains:

“It was not easy finding the right partner with the required experience and expertise. But from the very outset, Studio Innovation Lab impressed us with its ability to understand this complex issue and its willingness to meet the challenge. In fact, The Studio has its own scalable platform for creating a digital currency based on the blockchain.”

As the project, Uitmuntend Limburg, grows in numbers, it plans to hand over to Limburg.net. and widen the range and scope of activities around the province, especially as thousands of Limburgers across the 10 regions already have their wallets. Ronny Neckebroeck from The Studio commented:

“We are honored to be part of such a beautiful project. Developing the platform and payment app is a major step forward along the way towards making the LimbU project a professional and sustainable initiative. Working with Uitmuntend Limburg, we will make the LimbU a success – we are sure of it. And our experience in innovative digital solutions and blockchain makes us the ideal partner for handling the technological side of this great story.”

At the beginning of this year, The Studio also developed Pengo, an innovative service that enables individuals to send payment requests via instant messaging platforms such as Facebook Messenger, and WhatsApp.

The Netherlands is a leader in advancing blockchain technology in Europe and often slips under the radar, but the Dutch government is no slouch when it comes to promoting the interests of companies adopting new technologies, especially when such projects benefit the entire community such as Uitmuntend Limburg. Holland is a country with a social conscience, and legislation over the years has illustrated the degree to which its population is a beneficiary of the desire shown by the government to support its society as a whole.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Dutch Province of Limburg Launches Community Crypto appeared first on BitcoinNews.com.

Coinbase CEO: Virtual Reality and Crypto Next Big Combo

Coinbase CEO: Virtual Reality and Crypto Next Big Combo

Coinbase CEO Brian Armstrong has said that cryptocurrency has the potential to turn Virtual Reality into a full-time job.

Armstrong suggests that virtual spaces could create their own currencies or even make use of existing ones such as Bitcoin or Ethereum by integrating the means for users to spend crypto in the same way as they are currently using fiat.

Developers would see more time spent on such games, according to the Coinbase boss, taking it much further into the realms of Sci-fi by suggesting that players could use the virtual world to support themselves in the real world, cashing in their accrued gaming funds for “real” use, such as paying rent. He speculates:

“Perhaps we’ll see virtual bank buildings with pillars, virtual bank vaults that spin when you open them, and virtual tellers with glasses.” The exchange magnate, clearly a follower of the gaming and VR world added, “Ready Player One had a great visual of coins being collected in the game, and spilling out of characters when they were killed (leaving a big pile of loot on the ground).”

Clearly, Armstrong has seen the potential of turning VR ownership into the real thing via some of his own exchange-listed cryptocurrencies. But in reality, there’s still a long way to go – crossing the bridge from virtual into reality.

Armstrong appears to be in touch with the man on the street, if not through gaming and VR, then certainly in terms of what reality actually means for many of the world’s “have-nots” these days. This was shown by his recent personal $1 million giveaway through his charity project called GiveCrypto.

The project is a global enterprise which will give out cryptocurrency donations to worthy recipients, who will then be able to make personal choices in whether to keep their donations as cryptocurrency or exchange them for fiat. GiveCrypto wants to raise USD 10 million by the end of 2018 and grow to a fund of USD 1 billion over two years. Donations will hopefully come from wealthy donors who have amassed wealth through cryptocurrency, passing on their good fortunes to those in need of financial help. Suggested cryptocurrencies for donations are Bitcoin, Ripple, and Zcash.

Ripple’s co-founder Chris Larsen has already put in an undisclosed donation into the Armstrong charity hat. This may not be all that Ripple will be putting into Coinbase’s coffers if recent news that Coinbase plans to list XRP on its exchange becomes reality…. that’s not a virtual one by the way!

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Coinbase CEO: Virtual Reality and Crypto Next Big Combo appeared first on BitcoinNews.com.

American Express Praises Ripple for Cross Border Payments

american express

According to a top American Express representative, Ripple has the potential to revolutionize cross-border transactions globally.

Speaking in Madrid recently at the Wings of Change Europe conference, Carlos Carriedo, the credit card giant’s general manager of corporate payments indicated this was one reason that blockchain integration was high on the company’s agenda for change.

Clearly, Ripple’s XRP has caught the eye as the preferred blockchain route for the company moving forward, if Carriedo’s views are a clear representation of the Amercian Express’ programme for future development of financial services around the globe. He explained why his company was looking at Ripple becoming a significant blockchain partner in the future:

“Blockchain is absolutely an option we’re looking at. Just to give you a sense, we have invested in a fintech lab based on blockchain technology, just to understand how to leverage this better…We did a test, partnering with Santander locally, and with Ripple to just do cross-border transactions…And in a matter of seconds, through this test, our clients were able to transfer funds in a very transparent and seamless way, from one part of the world to the other one.”

Ripple itself has just joined three other partners to form a European blockchain called “Blockchain for Europe” in order to bring together what it describes as “fragmented” voices in Europe into a “more unified whole” in matters of the blockchain. Such moves are sure to offer confidence to intuitional players such as American Express, in the fact that Ripple is becoming a far more representative voice for the blockchain industry as a whole, despite its Bitcoin purist detractors.

Ripple is spreading its global network. And by working with American Express, collaborating with Santander to reduce the current inefficiencies of cross-border payments it has heightened its global profile. Also, significantly Ripple has gained approval to operate in China, opening up other opportunities in the region.  By using Ripple, Santander has stated that it wants to fundamentally change cross-border payments universally by establishing a strong alliance between the two companies. AM’s Carriedo again, speaking of the future of payments:

“There is more to come. There’s still a lot of things that need to get addressed with blockchain as a technology. But it’s very promising…The future is definitely digital. Digital is the way payments will continue to be across both the consumer part of the business the commercial part of the business”.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post American Express Praises Ripple for Cross Border Payments appeared first on BitcoinNews.com.

SEC Slams CoinAlpha With $50,000 Fine

SEC Slams CoinAlpha With ,000

The US Securities and Exchange Commission (SEC) has carried out another ICO related sanction, this time against CoinAlpha Advisors LLC, issuing a cease and desist order with an additional fine of USD 50,000 according to a filing published yesterday.

Established in July 2017, CoinAlpha Advisors LLC is a Fund manager registered with the Delaware authorities operating from California. The operators of the business were tasked with the management of the funds of CoinAlpha Falcon LP, a subsidiary of the former which was established later that year.

CoinAlpha’s intention was to raise funds and invest in digital assets on behalf of its investors and share the dividends among shareholders.

The commission’s concern was that unregistered securities were sold in exchange for partnership interests in the activities of the Fund. Apparently, CoinAlpha had never been registered with the Commission in any capacity. The filing reads that “approximately USD 600,000 from 22 investors, residing in at least five U.S. states had been raised within the period of October 2017 and May 2018.

The filing further reveals that the Fund had filed a “Form D Notice of Exempt Offering of Securities with the Commission on November 3, 2017”. However, this was done without “a registration statement with the Commission, and no exemption from registration was available for the securities offering during the Relevant Period,” thereby violating the securities law act preventing unregistered securities to be sold to US citizens.

Although, upon contact by the staff of the SEC, CoinAlpha stopped the offering and refunded investors of the funds including fees it had already collected.

CoinAlpha Advisors filed a Notice of Exempt Offering of Securities with the SEC on Nov. 3, 2017. However, the company was not registered with the SEC; therefore, CoinAlpha Advisors violated the securities law that “prohibits the sale of securities through interstate commerce or the mails unless a registration statement is in effect.”

CoinAlpha has been ordered to pay a “civil money penalty of USD 50,000” to the commission within 10 days.

The SEC continues to hold a tight grip on offenders of the securities act with regards to unregistered crypto-related securities offering, despite working to provide simplified crypto guidelines. This past fiscal year alone, reports reveal that more than 12 ICOs were shut down as a result of the crackdown activities of the commission, with more than USD 3.945 billion have be collected in fines and penalties.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

 

The post SEC Slams CoinAlpha With $50,000 Fine appeared first on BitcoinNews.com.

Ledger, Neufund Partnership Latest in Security Token Management Developments

Ledger, Neufund Partnership Latest in Security Token Management Developments

In a press release yesterday, cryptocurrency hardware wallet provider Ledger announced a partnership with blockchain-based equity fundraising platform Neufund to allow users to manage their security tokens on the Ledger desktop app.

The collaboration between Ledger and Neufund will foster a framework developed for securitized tokens, “allowing users to manage real-world assets on the blockchain while creating the safest user-experience for investors”.

Ledger CEO Eric Larchevêque said the partnership “marks a new, important chapter in bringing security tokens to the Ledger platforms”.

The current partnership is built upon an already established collaboration back in November 2017. Then, significant investors backing the Neufund Initial Community Building Mechanism were offered special editions of the Ledger Nano S.

Ledger had recently released its desktop application for crypto asset management and is moving forward with plans to add ERC-20 integration to its app. The app will allow users to manage their blockchain-based security assets through Neufund’s set of protocols.

CEO of Neufund Zoe Adamovicz said: “Currently, Ledger’s hardware wallets are the safest way to set up and manage investments conducted through Neufund’s set of protocols. With operations in the 7-9 digit (EUR) range, security becomes a top priority.”

With security tokens taking deeper roots within the cryptocurrency economy, should security tokens replace or overshadow utility tokens, the race is on to offer the most efficient securitized services to an estimated USD 10 trillion securitized tokens market by 2020.

Recently, Gibraltar Stock Exchange joined Millbrook Accord for security token interoperability. Yesterday, crypto-based fintech operator Bankex expanded its ecosystem to include security token assets trading.

In October, Neufund’s partnership with leading European crypto exchange BitBay allowed investors to purchase security tokens using fiat currencies. The announcement followed other partnerships that involved Malta Stock Exchange and Binance crypto exchange. All in the bid to becoming the first end-to-end primary issuance platform for security tokens focused on equity tokens.

On the other hand, a shift in cryptocurrency investments towards institutions has Ledger expanding shop with plans of including crypto custodian services to its service chain just after making a profit of USD 29.4 million in hardware wallet sales.

The duo further disclosed a planned legal-technical hackathon to be held in Paris, with the objectives of creating a more secure framework for managing real-world assets.

 

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Ledger, Neufund Partnership Latest in Security Token Management Developments appeared first on BitcoinNews.com.

Breaking: Coinbase One Step Closer to Listing Ripple

Breaking: Coinbase One Step Closer to Listing Ripple

It’s been a long wait with plenty of speculation but exchange giant Coinbase has finally bitten the bullet and announced on its blog today that it will add support for Ripple on its exchange after it gets final approval.

The news was revealed today along with an announcement that a package of some 30 crypto assets is likely to be added to its current discrete selection of cryptocurrencies, along with Cardano (ADA), NEO, and Tezos (XTZ).  The post is most likely a response to customers continued complaints that no support has existed for the second largest cryptocurrency after Bitcoin.

One thing that Coinbase has clarified is that not all of the names on its new hit list of favorable currencies will necessarily be listed, but it’s a positive step further for patient Ripple investors who have had to seek out other exchanges in order to carry out transactions, clearly losing Ripple significant business over time.

The following are among the Coinbase list of possible listings:

Cardano (ADA), Aeternity (AE), Aragon (ANT), Bread Wallet (BRD), Civic (CVC), Dai (DAI), district0x (DNT), EnjinCoin (ENJ), EOS (EOS), Golem Network (GNT), IOST (IOST), Kin (KIN), Kyber Network (KNC), ChainLink (LINK), Loom Network (LOOM), Loopring (LRC), Decentraland (MANA), Mainframe (MFT), Maker (MKR), NEO (NEO), OmiseGo (OMG), Po.et (POE), QuarkChain (QKC), Augur (REP), Request Network (REQ), Status (SNT), Storj (STORJ), Stellar (XLM), XRP (XRP), Tezos (XTZ), and Zilliqa (ZIL).

Coinbase’s post stated today:

“Adding new assets requires significant exploratory work from both a technical and compliance standpoint, and we cannot guarantee that all the assets we are evaluating will ultimately be listed for trading. Furthermore, our listing process may result in some of these assets being listed solely for customers to buy and sell, without the ability to send or receive using a local wallet.”

In January when its last concrete announcement regarding Ripple was made  that the then third top listed cryptocurrency wouldn’t be listed on its exchange, Ripple’s token, XRP, proceeded to lose roughly a third of its value.

It remains to see what impact a final stamp of approval will have on Ripple’s current fortunes.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Breaking: Coinbase One Step Closer to Listing Ripple appeared first on BitcoinNews.com.

Researchers Develop Algorithm to Predict Pump and Dump Schemes

Researchers Develop Algorithm to Predict Pump and Dump Schemes

Researchers from Imperial College London have developed an algorithm which they say can be used to predict cryptocurrency “pump and dump” schemes, something that allegedly contributes to USD 7 million worth of trading every month.

Pump and dump is a form of insider trading that has become increasingly commonplace since the rise of tokens in the cryptocurrency industry. It begins with an organizer accumulating a large amount of an obscure token in private, before announcing it to a closed group which then begin purchasing it also in large amounts, spiking the value.

Within minutes the selloff begins, with participants making an easy profit off those slow to the game and unaware of what was really going on.

While pump and dump schemes are present in conventional commodities trading, it is tightly regulated and participants can find themselves is significant trouble with the law. The issue in the cryptocurrency market is that there is no central authority to crack down on those responsible, hence these types of activity continue to take place, usually organized on private channels such as Telegram.

Jiahua Xu and Benjamin Livshits from Imperial College London have used machine learning to give investors a way to spot the schemes themselves, with some mathematical legwork.

Looking at 236 pump and dump cases, the researchers noted that the targeted cryptocurrency was nearly always preceded by unusual buying activity as the organizer accumulated a store prior to the pump. “The study reveals that pump-and-dump organizers can easily use their insider information to take extra gain at the sacrifice of fellow pumpers,” they explained.

These schemes can be avoided by identifying unusual buying patterns in obscure coins, Xu and Livshits identified, backing up their theory by training a machine learning algorithm with historical pump and dump data.

This is not a final solution, however, as organizers of these scams may change the patterns of their behavior to avoid detection by the algorithm.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Researchers Develop Algorithm to Predict Pump and Dump Schemes appeared first on BitcoinNews.com.

Russian Gazprombank to Launch Crypto Trading Service

Russian Gazprombank to Launch Crypto Trading Service

State-owned Russian bank Gazprombank is making good on suggestions it made earlier in the year that it was hoping to provide cryptocurrency assets to its clients in the future.

Back in March, Gazprombank’s Swiss division declared that demand from clients asking for facilitation and management of cryptocurrency funds meant that this next move was definitely on its radar and consequently a July pilot was put in motion.

The Russian government is still reviewing cryptocurrency regulation under the Digital Assets Regulation Bill, filed 25 January. The bill defines cryptocurrencies and tokens as digital financial assets. If the bill passes in its current form, it would allow trading on cryptocurrency exchange operators with authorized Know-Your-Customer (KYC) standards. This would also apply to initial coin offerings (ICOs) established in Russia. The Russian Duma will also lay out specifications for interacting with crypto and blockchain-related technologies.

The bank has decided to forge ahead with 2019 as its latest target, snapping up partners Avaloq and Metaco on the way, using SILO, a product developed by blockchain technology company Metaco. Metaco has integrated SILO into one of Avaloq’s Banking Suite product. An older, more established company, Avaloq supplies “core banking” products to some major financial institutions, including HSBC, Barclays and the Royal Bank of Scotland.

Avaloq’s Group Chief Technology Officer Thomas Beck claims that Metco’s integration of DLT will give crypto traders an extra layer of security:

“Thanks to the close integration of the Metaco storage solution, banking and wealth management customers won’t have to trust additional third parties when trading with cryptocurrencies. By bringing together all asset classes in one portfolio view, the solution will also ensure the highest levels of convenience and usability.”

In a joint statement released by the companies involved, they’ve stated that the bank will be able to “buy, sell and transfer crypto assets and currencies on behalf of clients and provide a consolidated portfolio view, without any need for a crypto-wallet or private key management”.

In other breaking crypto news from the region, the Russian Intellectual Property (IP) court has successfully used a blockchain-based solution for storing copyright data, with the court using blockchain solution provider IPChain‘s system to record a change in rights holder data of an IP, thus saving the data on the decentralized ledger permanently.

The IP recording platform is already working for the government of Uzbekistan, helping it record copyright data, especially in science and innovative sectors. Uzbekistan has also penned a deal with Kyrgyzstan’s State Patent Office, helping them digitize and store records in a decentralized environment.

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Russian Gazprombank to Launch Crypto Trading Service appeared first on BitcoinNews.com.

Expect ETFs Tomorrow… or in 20 Years Says SEC’s Crypto Mom

Expect ETFs Tomorrow... or in 20 Years Says SEC's Crypto Mom

Washington’s now named Crypto Mom, SEC Commissioner Hester Peirce, has spoken again on the possibility of Bitcoin Exchange-Traded Funds (ETFs) being given the go-ahead by the country’s financial legislators.

Peirce was meeting with representatives from the Digital Assets Investment Forum in Washington and was asked what the state of play looked like for ETF, seen as the long-awaited impetus for a regeneration of Bitcoin’s fortunes on the market.

“Don’t hold your breath” was the answer they received; perhaps not the one that they wanted to hear, but nonetheless both honest and concise in its delivery. A podcast two weeks ago had given some renewed hope to the market when Peirce assured the cryptocurrency community in Washington that a crypto ETF was “definitely possible”.

The commissioner pointed out then that she saw “significant intellectual capital” being invested by both institutional investors and exchanges towards the development of a Bitcoin ETF, perhaps leaving investors scratching their heads over a chicken or egg quandary. Investors see the issuance of an ETF as the impetus for change, not necessarily the other way round.

Peirce said at the meeting that a crypto EFT wasn’t necessarily imminent and gave some homely advice that people should “not live or die on when a crypto or Bitcoin ETF gets approved” referring to the SEC’s historical conservatism prone to being  “a little slow with innovations”.

Although her 20-year threat was clearly tongue in cheek, as were references to investors waking up to a complete change in stance by the SEC, the timbre of her comments were clear; a crypto ETF is not imminent. Another, more weighted and slightly cryptic, comment from the same meeting was sure to get news desks busy with their own interpretations:

“Be careful what you ask for. Never underestimate the ability of regulators to think up regulation requirements you have to follow that you never thought of.”

An ominous portent of the future from Crypto Mom, or is she simply teasing?

 

Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post Expect ETFs Tomorrow… or in 20 Years Says SEC’s Crypto Mom appeared first on BitcoinNews.com.