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Owning Bitcoin Creates a Complex Tax Situation – NerdWallet (blog)


Forbes

Owning Bitcoin Creates a Complex Tax Situation
NerdWallet (blog)
“Many people think that there’s no tax consequences when they sell an object — it’s for personal use and they’re expecting to lose money on it anyway, whether it be a car, an appliance or another piece of property,” explains Brian R. Harris, a tax
Claiming Bitcoin 1031 Exchanges On Your 2017 TaxesForbes
Bitcoin Forks and Livestock Law? Tax Day 2018 Is a Different AnimalCoindesk
If you traded crypto on Coinbase, the IRS might be coming for youQuartz
Bitcoin News (press release)
all 147 news articles »

Forbes

Owning Bitcoin Creates a Complex Tax Situation
NerdWallet (blog)
“Many people think that there's no tax consequences when they sell an object — it's for personal use and they're expecting to lose money on it anyway, whether it be a car, an appliance or another piece of property,” explains Brian R. Harris, a tax ...
Claiming Bitcoin 1031 Exchanges On Your 2017 TaxesForbes
Bitcoin Forks and Livestock Law? Tax Day 2018 Is a Different AnimalCoindesk
If you traded crypto on Coinbase, the IRS might be coming for youQuartz
Bitcoin News (press release)
all 147 news articles »

Here’s How Taxes Are Harming Bitcoin’s Usefulness as a Payment Method

While most of the early buzz around Bitcoin centered on it as a new, fast, cheap and permissionless method of online payment, the focus has moved from medium of exchange to store of value over the past few years….

Here’s How Taxes Are Harming Bitcoin’s Usefulness as a Payment Method

While most of the early buzz around Bitcoin centered on it as a new, fast, cheap and permissionless method of online payment, the focus has moved from medium of exchange to store of value over the past few years. It’s clear that bitcoin is useful for censorship-resistant payments that may not otherwise be possible without this new technology, but much more of the recent hype has been around tracking the price more than anything else at this point.

Although general activity on the Bitcoin network has continued to rise, a recent report from blockchain analytics firm Chainalysis shows that a growing percentage of this activity is related to trading on exchanges.

There are a variety of reasons as to why the average person on the street is not interested in using bitcoin for payments. For example, the user interfaces are still hard for non-techies to use, network congestion leads to high fees, and price volatility is not something people are used to dealing with in their wallets (at least in most developed countries).

On top of that, one other key issue is often overlooked: capital gains taxes.

Who’s Reporting Capital Gains Taxes on Purchases Made via Bitcoin?

In the United States and many other countries, capital gains taxes must be paid every time an individual uses some of their bitcoin stash to make a purchase, as long as the bitcoin price has gone up since those bitcoin were first acquired.

For example, let’s say someone buys 1 bitcoin when the price is $1,000. This person simply holds that bitcoin for a couple of years, and then it is eventually worth $10,000. If this person goes to the store and purchases a television for $500, they’re effectively selling a portion of their bitcoin holdings at a profit. These gains are supposed to be taxed.

When you imagine this person earning bitcoin on a regular basis and buying something as small as a meal or a coffee every day, it becomes easy to see how keeping track of everything would be quite cumbersome, especially when bitcoin wallets offer pretty much zero assistance in this area at this time.

Even if the buyer and seller involved in a transaction are both bitcoin enthusiasts, it wouldn’t make much sense to make a deal denominated in bitcoin; the tax headache is not worth it.

Instead, it makes much more sense for individuals in places like the United States to simply convert $1,000 or so worth of their bitcoin holdings to the local currency by way of a bitcoin debit card for spending every now and then.

It’s unclear how many people have effectively become tax evaders by accident because they’re spending their bitcoin gains without reporting them. Obviously, those involved in illicit activities tend to be less concerned with the tax implications of using bitcoin for online payments because they’re already attempting to hide these transactions from the authorities anyway.

The Cryptocurrency Fairness Act

So what’s the solution to the usability issues caused by capital gains taxes? One might be through a change in tax law, at least in the United States.

The Cryptocurrency Tax Fairness Act introduced in Congress last year would exempt bitcoin transactions under $600 from capital gains taxation. This means bitcoin users would only have to calculate the tax implications of their bitcoin payments if they’re in amounts greater than $600. Notably, this is the same exemption that already applies to foreign currencies.

The passage of this act would do wonders for the usability of bitcoin for payments by Americans.

Hedging Options Could Also Help

Another useful tool for avoiding tax-related usability issues with bitcoin may be hedging options in wallets. This is already available with Abra.

The basic idea is that you hold bitcoin in a smart contract hedged to U.S. dollars or any other currency to avoid bitcoin’s price volatility. This setup would be useful for anyone who is interested in using bitcoin for payments but not necessarily gaining exposure to the price swings of the cryptoasset.

If someone can hold bitcoins as U.S. dollars, they no longer have to worry about gains or losses whenever they make a transaction; however, they also lose access to the store-of-value properties of bitcoin in this situation.

This article originally appeared on Bitcoin Magazine.

The @Bitcoin Twitter Account Is Back

What’s Going On with @Bitcoin Twitter?The suspension on Sunday of @Bitcoin, one of the oldest and most popular Twitter accounts, has raised a raft of questions. Suspensions of high profile Twitter accounts are rare and are usually accompanied by some sort of official explanation, with doxxing or harassment usually cited. With no official word on why @Bitcoin was suspended and […]

The post The @Bitcoin Twitter Account Is Back appeared first on Bitcoin News.

What’s Going On with @Bitcoin Twitter?

The suspension on Sunday of @Bitcoin, one of the oldest and most popular Twitter accounts, has raised a raft of questions. Suspensions of high profile Twitter accounts are rare and are usually accompanied by some sort of official explanation, with doxxing or harassment usually cited. With no official word on why @Bitcoin was suspended and then reassigned, speculation has abounded. But in the last few hours, signs have emerged that the account has been reactivated and returned to its original owner.

Also read: Who Controls the @Bitcoin Twitter Account?

Questions Mount in the Wake of @Bitcoin’s Suspension

What’s Going On with @Bitcoin Twitter?In cyberspace, the early adopters claim the rewards. Whoever registered the @Bitcoin Twitter account on August 17 2011 got themselves a prime piece of real estate. As bitcoin grew over the years, so did the account’s followers, reaching 700,000 by late 2017. By that stage, the account had largely fallen dormant, but it sprang back into life in January of 2018 and this time its tune had changed. Rather than passively tweeting out price updates and the occasional news piece, it was now promulgating all things bitcoin cash, and occasionally speaking ill of bitcoin core. This didn’t go down well with bitcoin core supporters, some of whom sought to have the account banned.

What’s Going On with @Bitcoin Twitter?On April 8, they finally got their wish when @Bitcoin disappeared without warning. In its place was a standard notice informing viewers that the account had been suspended. There are two types of Twitter suspension: a temporary ban (effectively a timeout for bad behavior) and a permaban, which there is no coming back from. Major accounts to have fallen prey to the latter option include right-wing provocateurs Milo Yiannopoulos and Tommy Robinson, Brits whose views on Muslim immigration and Islamic terrorism may have been pivotal in sealing their downfall. It is hard to imagine what the operator of @Bitcoin could have done to earn a similar fate.

What Did @Bitcoin Do Wrong?

Twitter’s rules forbid offensive behavior of various kinds including “targeted harassment of someone or [inciting] other people to do so”. In addition, “You may not promote violence against, threaten, or harass other people on the basis of race, ethnicity, national origin, sexual orientation, gender, gender identity, religious affiliation, age, disability, or serious disease.” There is nothing in Twitter’s rules about speaking ill of particular brands of bitcoin, however, or promoting one flavor of cryptocurrency over another. They do state that “You may not impersonate individuals, groups, or organizations in a manner that is intended to or does mislead, confuse, or deceive others,” but it would be a stretch to suggest that promoting bitcoin cash is an attempt to confuse and deceive.

Forum Wars: r/Bitcoin Mods Accused of Hacking and Vote Manipulation

Members of r/bitcoin have repeatedly filed tickets pleading with Twitter to ban the account, but their actions ought to have had no effect. Just because you don’t like something doesn’t make it illegal. There is an alternative theory for what could have caused @Bitcoin’s permaban. Twitter’s rules state that “You may not buy or sell Twitter usernames”. It was speculated that this may have happened after @Bitcoin showed its allegiance to BCH, but there was no evidence to support this, and it is perfectly conceivable that the account’s original owner may simply have gravitated towards bitcoin cash. Moreover, if that had been the cause, it seems strange that it should take three months for Twitter to issue a suspension.

There is another theory going around, and it’s a proper conspiracy theory no less. Twitter’s Jack Dorsey is known to have invested in Lightning Network, a bitcoin core scaling solution seen as competing with bitcoin cash for low-cost transactions. Could this have influenced Twitter’s decision to silence @Bitcoin?

What Now for @Bitcoin?

What’s Going On with @Bitcoin Twitter?One of the strangest things about the suspension of @Bitcoin is what happened to the account in the hours afterwards. Normally, the account owner is given the chance to appeal the suspension, during which time the username is retained. Instead, the username was immediately returned to the open market. Thereafter it appears to have changed hands twice, first popping up as a Turkish account and then as a Russian one, whose owner joined Twitter in 2013, and had the fortune of switching to the @Bitcoin name when it became available. With the new owner’s account protected, so that only approved followers can view their tweets, there is no means of gauging their intentions.

For around 24 hours, “Andrei from Moscow Russia” has been serendipitously sitting on Twitter’s most desirable bitcoin handle. But in another surprise move, it looks like the @Bitcoin account has now been returned to its original owner and is in the process of being fully reactivated. If this proves to be the case, it will come as a relief to the rightful owner, who has cared for the account for the past seven years. Its 700,000 followers have been reduced to just a few thousand, though usually these are fully restored within hours of a reactivation. Judging by the account’s first tweet, @Bitcoin is as unclear as the rest of crypto Twitter as to what happened and why.

Why do you think @Bitcoin was suspended by Twitter? Let us know in the comments section below.


Images courtesy of Shutterstock, and Twitter.


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Mark Cuban Would Rather Have a “Pet Rock” Than Gold or Bitcoin

Mark Cuban has come out with some strong views on both Bitcoin and gold as a long-term store of value. The American entrepreneur and investor deemed both assets as nothing more than “collectables”. Mark Cuban Prefers Bitcoin to Gold, Albeit Marginally Speaking to gold news platform Kitco, the billionaire Shark Tank personality said that he

The post Mark Cuban Would Rather Have a “Pet Rock” Than Gold or Bitcoin appeared first on NewsBTC.

Mark Cuban has come out with some strong views on both Bitcoin and gold as a long-term store of value. The American entrepreneur and investor deemed both assets as nothing more than “collectables”.

Mark Cuban Prefers Bitcoin to Gold, Albeit Marginally

Speaking to gold news platform Kitco, the billionaire Shark Tank personality said that he sees “gold and Bitcoin as being the same thing”. Based on his opinion, since neither Bitcoin or gold were viable forms of currency, they lacked sufficient utility to necessitate value. For this reason, he deems them both collectables since their value was based solely on “supply and demand”.

Cuban had some interesting ways of describing his hatred for the precious metal:

“Hate is not strong enough. Hate with extreme prejudice… hate with extreme prejudice is not enough, hate with double extreme prejudice with an ounce of hot sauce.”

During his rant about gold, however, Cuban did let slip one quality that could make Bitcoin a far better as a store of value than gold: it’s limited supply:

“The good news about bitcoin is that there’s a finite supply, and the bad news about gold is that they’ll keep mining more.”

The presenter then paraphrased Cuban’s stance on gold by comparing it to a pet rock, to which the investor replied:

“Pretty much, but I’d buy the pet rock first.”

When pressed for a “safe place” for people to put their money by the presenter, the owner of the Dallas Mavericks clearly had a short memory of the global financial turmoil of a decade ago – the very event that caused Bitcoin to be created in the first place:

“Just put the money in the bank, just sleep well at night.”

Cuban did offer some reasonable advice amongst jokes about “hot sauce”, “pet rocks”, and the economic hardships in Puerto Rico. He claimed that rather than making speculative investments, it’s better to get entirely debt free. For him, it makes little sense to be paying a percentage on a loan and expecting an investment to beat that percentage. That approach is “a lot safer than picking a stock… or real estate.”

Mark Cuban is hardly the first billionaire to slate Bitcoin in such a way. Jamie Dimon of JP Morgan famously called it a “fraud” last year. He later backpedalled on this statement, claiming that he wishes he hadn’t said it because Bitcoin was all anyone wanted to talk to him about. On the other hand, last week George Soros did something of a U-Turn on his previous anti-Bitcoin stance. The 87-year-old investor had been vehemently opposed to cryptocurrencies until it emerged he’d given the green light to his family office taking positions in digital currencies. Perhaps Mark Cuban will be the next to bout turn?

Image Courtesy of Shutterstock

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Swiss National Bank Remains Cool Towards Crypto

In a speech in Zurich last week, Andrea Maechler, governing board member of the Swiss National Bank (SNB), suggested that blockchain technology had “potential”, but cryptocurrencies still weren’t “comparable with money”. In recent years, Swiss banks have been reluctant to have anything to do with cryptocurrency firms. Despite Switzerland’s tradition of banking secrecy which dates back …

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In a speech in Zurich last week, Andrea Maechler, governing board member of the Swiss National Bank (SNB), suggested that blockchain technology had “potential”, but cryptocurrencies still weren’t “comparable with money”.

In recent years, Swiss banks have been reluctant to have anything to do with cryptocurrency firms. Despite Switzerland’s tradition of banking secrecy which dates back to the Middle Ages, a new banking “secrecy”, distributed ledger technology (DLT), has been of little interest to major banking players in the Alpine country.  Some smaller banks have introduced cryptocurrency asset management schemes over the past few years but the larger banks remain skeptical.

Outside of the banking sector, the Swiss have warmed to digital currencies. Dozens of startups have used blockchain technology to raise millions of Swiss francs through initial coin offerings. In Zug, 30 kilometres south of Zurich, huge amounts of digital currencies have traded daily since 2013 at Crypto Valley.  The organization is self-described as being an “independent, government-supported organization… dedicated to developing and executing a community-driven program targeted at establishing and growing our ecosystem”.

Maechler’s address highlighted the fact that SNB was still concerned about the “risks” behind “new innovations”. Referring to blockchain technology, she indicated that banking security was particularly important in the current Swiss banking system although the bank welcomed “innovations which advance efficiency”.

The co-existence of two systems within the Swiss banking system was another area of concern. Meaechler suggested that “should DLT take hold in securities settlement, the question would then arise as to how DLT-based securities systems and conventional central bank systems can coexist”. She argued that it would be the market that would decide “which technologies and solutions would prevail”.

Her final comments would offer little solace to those in Switzerland’s cryptocurrency environment looking for more cooperation between crypto exchanges and banking sectors. Viewing any synergy as a matter of “debate”, she suggested: “Digital central bank money for the general public is not necessary to ensure an efficient system for cashless payments. It would deliver few advantages but would give rise to incalculable risks with regard to financial stability.”

 

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South Africa Orders Taxpayers to Declare Cryptocurrency Gains

The South African Revenue Service (SARS), the revenue service of the South African government, is ordering taxpayers to declare cryptocurrency gains and losses or risk facing penalties, regardless of how unclear the tax rules are at the moment. South Africa’s Tax Agency to Apply Penalties on Those Who Fail To Declare Cryptocurrency Gains South Africa’s revenue

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The South African Revenue Service (SARS), the revenue service of the South African government, is ordering taxpayers to declare cryptocurrency gains and losses or risk facing penalties, regardless of how unclear the tax rules are at the moment.

South Africa’s Tax Agency to Apply Penalties on Those Who Fail To Declare Cryptocurrency Gains

South Africa’s revenue service has defined cryptocurrencies as intangible assets, instead of a currency, for income tax purposes or capital gains tax. All the cryptocurrency-related income must be declared and the onus is on taxpayers as failure to comply may result in interest and penalties.

“Whilst not constituting cash, cryptocurrencies can be valued to ascertain an amount received or accrued as envisaged in the definition of ‘gross income’ in the Act”, said SARS. The agency offers guidance to taxpayers who are uncertain about specific transactions involving cryptocurrencies.

According to SARS, taxes are applicable to cryptocurrency mining, trades on cryptocurrency exchanges, and the purchase of goods and services using digital money. On the other hand, taxpayers can claim expenses associated with cryptocurrency accruals or receipts, as long as they are related to income generation and for purposes of trade.

Regarding value-added tax (VAT), the South African government is still considering how to apply to cryptocurrencies: “Pending policy clarity in this regard, SARS will not require VAT registration as a vendor for purposes of the supply of cryptocurrencies,” said SARS in a statement.

The regulatory framework for cryptocurrencies is still pending review as the South African Reserve Bank (SARB) is working with the National Treasury, the Financial Services Board and the Financial Intelligence Centre to evaluate what they consider to be the best approach.

SARB has recently created an investigative unit to monitor the crypto space and to set up a proof of concept (PoC) for DLT-based interbank clearing and settlement. A priority for the SRO would be to ensure the nascent industry is not over-regulated so it can blossom. In January, SARB established a fintech task force to review the central bank’s position on private cryptocurrencies and addressing regulatory issues such as clearing and settlement risks, exchange control impacts, monetary policy and financial stability.

The surge in popularity of cryptocurrencies has contributed to the opening of at least 15 new trading venues in South Africa within the past year alone. The country’s central bank has launched a program that will trial JPMorgan’s Quorum blockchain in interbank clearing and settlement.

According to Luno, a global wallet and cryptocurrency exchange that boasts 1.5 million users spread across 40 countries, South Africa accounted for 37% of  Bitcoin transactions occurred in November 2017, when the price of BTC was hovering in the $10,000 range.

Image Courtesy of Shutterstock

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Bitcoin Today: Prices Remain Trapped Below $7000 Despite Corporate Interest – TheStreet.com


TheStreet.com

Bitcoin Today: Prices Remain Trapped Below $7000 Despite Corporate Interest
TheStreet.com
The municipal government in Hangzhou, China, has backed a new fund that will invest $1.6 billion in blockchain-focused startups, Sohu reported. The city of Hangzhou is set to contribute $400 million to the fund, called the Xiong’An Global Blockchain


TheStreet.com

Bitcoin Today: Prices Remain Trapped Below $7000 Despite Corporate Interest
TheStreet.com
The municipal government in Hangzhou, China, has backed a new fund that will invest $1.6 billion in blockchain-focused startups, Sohu reported. The city of Hangzhou is set to contribute $400 million to the fund, called the Xiong'An Global Blockchain

NEO, EOS, Litecoin, IOTA and Stellar: Technical Analysis April 10, 2018

Of all the coins under our radar, NEO is the best performer gaining 5 percent in the last 24 hours. Unlike Litecoin, Stellar, EOS and IOTA, the coin is buoyed by a confluence of activities that might aid in recovery. Apart from NEO, Litecoin continues to erode and sooner or later, prices could test $100

The post NEO, EOS, Litecoin, IOTA and Stellar: Technical Analysis April 10, 2018 appeared first on NewsBTC.

Of all the coins under our radar, NEO is the best performer gaining 5 percent in the last 24 hours. Unlike Litecoin, Stellar, EOS and IOTA, the coin is buoyed by a confluence of activities that might aid in recovery. Apart from NEO, Litecoin continues to erode and sooner or later, prices could test $100 and $90 in the short term. Generally, our bear projections remain valid despite weak spikes as we saw in NEO.

Let’s have a look at these charts:

XLM/USD (Stellar Lumens)

Stellar Lumens Technical Analysis

XLMUSD 4HR Chart from Bittrex for April 10, 2018

Fundamentally, there is nothing much that we can talk of. It remains the same old stuff but when it comes to price action, our previous stellar Lumens technical analysis would be of help.

Technically, Stellar Lumens sellers are in charge and every high remains a selling opportunity. We can’t reiterate that enough. In the 4HR chart, the reaction at the main resistance trend line is spectacular.

As far as technical set ups is concerned that’s a double bar bearish engulfing pattern and a bearish engulfing candlestick bringing with it a 5 percent value erosion. Consequently, this means sellers can jump in and aim for $0.07 as the weekly chart support-resistance lines dictate.

IOT/USD (IOTA)

IOTA Technical Analysis

IOTUSD 4HR Chart from BitFinex for April 10, 2018

Industry big wigs continue to tow the IOTA line and of course, that’s good news for the blockless system and their believers. As you may know by now, Dr. Rolf Werner is the new addition to IOTA foundation. On the development front, IOTA is making progress and even though the system remains with its own flaws, IOTA remains pretty much resilient and baffling to some.

In my opinion, when Trinity-with a face lift and several use friendly features-becomes available, IOTA demand might rise. At the moment though, it isn’t rocket science, our IOTA technical analysis points to a slump.

From our previous technical analysis, that over-extension in the 4HR chart and a sell signal was fodder for sellers. Simply put, sellers are riding on strong bear wave and are deep in profits. In my view, any break below $0.90 or last week’s lows and IOTA investors might see prices testing $0.35 and Q4 2018 lows.

EOS/USD (EOS)

EOS Technical Analysis

EOSUSD 4HR Chart from BitFinex for April 10, 2018

Besides recent EOS development and milestones do you know that the platform have a nice measure against hacking or any other illegal fund transactions? Well, because of their staking and governance system in place, users can arbitrate for fund reversal. That’s a pretty nice feature in EOS and with an Air Drop soon after EOS launches, holders should celebrate but prices could suffer because of such.

Anyhow, price action is turning out to be a blemish in the midst of these attractive developments. EOS prices are still moving within a tight channel. As long as prices are below last week’s highs at $6.5, traders can always welcome shorting opportunities more so when a stochastic sell signal prints. EOS is likely to depreciate further and in the mean time, our ultimate targets is March 18 lows of $4 but with mid range support at $5.

LTC/USD (Litecoin)

Litecoin Technical Analysis

LTCUSD 4HR Chart from CoinBase for April 10, 2018

After Abra and Alliant, Litecoin is still bringing on board payment solutions. Yesterday, news that CoinGate and PrestaShop are collaborating is supportive.

Despite positive talks, adoption of Litecoin and other cryptocurrencies as a means of exchange is still low. With this partnership, more than 80,000 EU merchants would be accepting payment in Ethereum, Litecoin or Bitcoin and all this is good for cryptos in the long run.

In the charts, there is a real threat that seller will breach $110 as per our previous Litecoin Technical analysis. After all, that nice bearish engulfing candlestick is setting pace for sellers to join in and drive prices towards $90 in the short term and $50 in the medium to long term.

NEO/USD (NEO)

NEO Technical Analysis

NEOUSD 4HR Chart from Bittrex for April 10, 2018

There is a new Neon NEO wallet update from the City of Zion where the team really tried to fix some bugs.

Could be this be a reason for NEO recovery? Well, maybe! Understandably, NEO remains surprisingly liquid during the Asian session and rumors are rife that it might be after all be listed at Bithumb, the world second largest cryptocurrency exchange. Undoubtedly, NEO would soar if that happens.

Additionally, the tight schedule in Europe could be a reason for this surprising appreciation and coupled with Binance’s monthly GAS distribution, holders have something to smile about, at-least temporarily. This is on top of other ICOs in the pipeline including NEX, AlphaCat, Moonlight, Aphelion and others.

In the chart, our projections were right and as we can see prices are reacting at the lower limit of our sell zone-$55. If it remains this way, I anticipate more NEO depreciation now that there is an over-extension after yesterday’s pump. Sellers should eye $40 in the short term.

All charts courtesy of Trading View

 

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New “Know-Your-Transaction” Tool Enables Enhanced Blockchain Investigation

Cryptocurrency investigation enterprise Chainalysis is releasing a product called Know Your Transaction (KYT) designed to help businesses track customers that may be involved in illicit cryptocurrency-related act…

New “Know-Your-Transaction” Tool Enables Enhanced Blockchain Investigation

Cryptocurrency investigation enterprise Chainalysis is releasing a product called Know Your Transaction (KYT) designed to help businesses track customers that may be involved in illicit cryptocurrency-related activity. The company’s clientele includes the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA) and Europol.

Per a recent blog post, Chainalysis stated that it holds a lot of faith in both cryptocurrencies and blockchain technology:

“Blockchains create new ways for people to build trust among themselves and transact using cryptocurrencies. Cryptocurrencies have, in turn, inspired people to reimagine the financial machinery that powers world commerce. People are collecting land in virtual realities, conducting real-time payments for computation services, and buying collectible cats on the internet. This is just the beginning of worldwide access to financial instruments.”

The venture’s primary goal is to get banks involved in the cryptocurrency scene and to create a world where financial institutions can offer their services to digital currency exchanges and ventures, but alleged fears of money-laundering make this somewhat tricky, which explains the reasoning behind the product’s release.

Chainalysis’ KYT provides “real-time feedback” on transactions and fuels relevant information into what the company calls exchanges’ “transaction processing engines,” so executives can raise alerts regarding risky customers and monitor suspicious activity. The product has been in a testing phase amongst a small group of select customers, who reported seeing a “20X improvement in the speed of account reviews.” KYT will now be released to global cryptocurrency exchanges and financial institutions.

In addition, the company is also introducing multi-currency support. Chainalysis will start with bitcoin cash for its law enforcement customers and is looking to expand to 10 cryptocurrencies by the end of 2018.

Chainalysis recently landed approximately $16 million in series A funding from venture firm Benchmark, whose only other cryptocurrency-related investments include Pantera Capital and Xapo back in 2014.

General partner Sarah Tavel, who led the deal with Chainalysis, explained that the move was a smart choice, and called Chainalysis a “meat and potatoes” company:

“All these regulated institutions want to participate [in cryptocurrency transactions], but they need to understand with whom they are transacting and where their funds are originating. We’d solved these traditional compliance requirements in the fiat world.”

Chainalysis was founded in 2014 by Oxford economist Jonathan Levin and Michael Granger, the former COO of San Francisco-based bitcoin exchange Kraken. The company employs over 75 people and boasts offices in New York, Washington D.C. and Copenhagen.

Chainalysis rose to fame after it was selected to investigate Japan’s Mt. Gox debacle, which saw roughly half a billion dollars worth of cryptocurrency disappear practically overnight. The reported mastermind is an alleged Russian cybercrime suspect who was arrested in Greece last summer.

Chainalysis isn’t alone in this space. London-based Elliptic, which also runs investigations relating to cryptocurrencies, has garnered over $7 million in funding from institutions like Banco Santander bank and Octopus Ventures to further expand its operations and product development team.

This article originally appeared on Bitcoin Magazine.

Banker Moves from Wall Street to Advertising ICOs

A former employee of Credit Suisse Group AG, Brian Wirtz, has left his investment banking job on Wall Street to pursue a venture in ICO startups. As reported by Bloomberg, Wirtz exited the Swiss bank after nearly five years of employment, hoping to now promote the issuing of security tokens in particular during his new …

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A former employee of Credit Suisse Group AG, Brian Wirtz, has left his investment banking job on Wall Street to pursue a venture in ICO startups.

As reported by Bloomberg, Wirtz exited the Swiss bank after nearly five years of employment, hoping to now promote the issuing of security tokens in particular during his new advertising pursuit.

Exiting Wall Street

Wirtz’s LinkedIn profile described his role at Credit Suisse as an “investment banker focused on helping crypto core teams achieve their strategic missions”. He previously worked as the head of blockchain advisory at the bank, describing his role here as “director [of] blockchain, crypto assets [and] investment banking”.

In a video accessible on the Credit Suisse website, Wirtz discusses his working history in relation to the cryptocurrency industry. After becoming engaged with Bitcoin in 2012, he took his newfound interest with him when he began work at Credit Suisse in 2013. Credit Suisse is currently investing in blockchain technology, as is JPMorgan Chase.

During his time at Credit Suisse, Wirtz spent six months pursuing a Bitcoin mining company on behalf of the bank, but his endeavor never came to fruition. He spent significant time advising companies on how best they could invest in blockchain technology.

Credit Suisse has a history of indirectly promoting the cryptocurrency market, previously hosting cryptocurrency conferences for institutional investors in the US. The conferences tend to get a lot of media traction, influencing the industry in a positive direction.

Wirtz is now allegedly looking to begin a project advertising security token ICOs, which should build confidence with ICO issuers currently operating in a tenuous regulatory climate. He is experienced in dealing with regulated securities, lending arguably much-needed compliance know-how to the industry.

It is reported that Wirtz left Credit Suisse because he was unable to accomplish his cryptocurrency goals while operating under a major investment bank. Credit Suisse CEO Tidjane Thiam has never openly come out in favor of cryptocurrencies.

 

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Earn Money by Selling Your Personal Data With Opiria Platform

In today’s rapidly digitalized world data has become the new currency. As more and more data analytics companies enter the market, copious amounts of personal information is being skimmed and collated from the public and private domains and websites. The advent of social media, e-commerce, and the Internet of Things (IoT) have created a data

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In today’s rapidly digitalized world data has become the new currency. As more and more data analytics companies enter the market, copious amounts of personal information is being skimmed and collated from the public and private domains and websites.

The advent of social media, e-commerce, and the Internet of Things (IoT) have created a data brokerage marketplace of over 250 Billion U.S dollars per year. Personal data is being collected and analyzed without proper consent from individuals and eventually is sold to the marketing or research divisions of profit-making organizations. Companies use this data to design and develop products and services based on the consumer insights.

Opiria, an Ethereum-based blockchain platform along with PDATA Tokens, plan to create the world’s largest decentralized marketplace for the secure, fair and transparent trading of data. The current system of data aggregation is opaque and unregulated; customers often feel that their privacy has been violated, and companies are unable to collect enough quality data to reach their market research requirements. This leads to heavy losses due to improper data collection.

The Opiria platform uses PDATA Tokens as the currency that can be used to procure and trade data. The PDATA tokens can benefit companies that buy personal data directly from consumers. Customers are compensated using the PDATA tokens, which is enabled through smart contracts on the blockchain.

The Opiria platform and the PDATA token system promise to democratize the brokerage of personal data by giving individuals the choice to securely sell their personal data to the company of their choice, in a secure, fair and lawful manner.

The platform also promises to give companies access to real, reliable, high-quality consumer data while being aligned with General Data Protection Regulation (GDRP) guidelines. For the first-time consumers can control who can access their personal information and receive proper compensation for providing their personal information.

Customers can finally choose what data they wish to share via the Opiria database. The more information they share, the more valuable their profile becomes. Companies can ask the consumers for permission to access their disclosed personal data via the Opiria platform.

Once the consumer is paid in PDATA tokens, a smart contract is created between the customer and the company, and customers data is released to that company. As the data flows directly from the consumers to the companies, it negates the middlemen or data brokers from the system, who have been using unfair means to acquire and sell data.

Opiria aims to raise 30 million USD through its token sale, which will help develop the Opiria Ecosystem by March 2019. The platform has plans to cover over 50 countries and acquire more than quarter billion consumers on their platform by 2023.

As the platform is decentralized, no regulations can close down the operations of the Opiria platform. For more information on this revolutionary platform and its benefits, visit https://opiria.io/ .

 

 

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Indian Pressure on Cryptocurrency Market Backfires

The Reserve Bank of India (RBI) has explicitly prohibited regulated entities from doing business with any companies dealing in virtual currencies. Last week’s decision raised concerns regarding a full ban on cryptocurrencies, which is not true. The jolted market fears Bitcoin and altcoins will face a drop in traded volumes in India, but that may

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The Reserve Bank of India (RBI) has explicitly prohibited regulated entities from doing business with any companies dealing in virtual currencies. Last week’s decision raised concerns regarding a full ban on cryptocurrencies, which is not true. The jolted market fears Bitcoin and altcoins will face a drop in traded volumes in India, but that may also turn out to be false.

India’s Cryptocurrency Market Adapts to RBI’s Pressure

Reasons of consumer protection, market integrity, and money laundering, have led India’s central bank to ban the use of cryptocurrencies by regulated firms. The RBI expressed its discomfort with Bitcoin in 2017 and the Finance Ministry of India had likened those assets to Ponzi schemes and said that their use “as part of the payment system” would be eliminated. As the RBI forces that hand, banks in India are emailing their customers to let them know they no longer allow their debit and credit cards to be used to purchase or trade in cryptocurrencies.

Crypto-industry professionals point fingers at government authorities and bankers for the witch hunt, while admitting that it would be better to work within the regulated framework instead of ring-fencing.

A less politically correct approach was given by an Indian cryptocurrency exchange professional who chose to stay anonymous: “This isn’t really a big surprise, but it is definitely stupid. The government has been after us, and the bank guys have been after us. They’re doing all the fraud in the world, but they say that Bitcoin is only for illegal uses. In January, the banks froze our accounts, the Income Tax guys froze us for a couple of days, and there have been social media attacks to scare people away from crypto. We’re all figuring out how we can work, but Bitcoin is not illegal”.

 

Siddharth Devnani, co-founder of SoCheers, told Gadgets360: “This notice is almost like a full ban on these exchanges. Peer to peer sites and some other groups exist which will take over this vacuum and many more platforms for trading will be created which will be under the radar or offshore. These will be completely unregulated causing even further possibilities of security failures, fraud, and money laundering. Wouldn’t it be in the government and the citizens’ interest to regulate the existing exchanges, and ensuring full KYC (know-your-customer) and AML (anti-money laundering)?

Meanwhile, industry players within the crypto-space are drawing up contingency plans including moving overseas. BFX Coin and Al Kasir Group are planning to move their business to Dubai. Prashant Many, head of BXF Coin will be cutting its workforce size and sent an internal communication to his staff: “Our operational offices have started in Dubai & Georgia. Operations will also commence soon by May 2018.”

The market usually adapts to all kinds of forces. The RBI pressure is unlikely to end the cryptocurrency market in the country. India Coin (INDIA) is up by 280.90% today.

Image Courtesy of Shutterstock

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The Year of Decentralization: Which Platforms Are Making the Most Difference?

Although 2018 has been a weird year for cryptocurrencies, it is proving to be a boom for the blockchain. It has received several high-level endorsements from government and industry officials, and it seems to be gaining traction as a feasible solution to many of our most pressing problems. In an interview with Fox Business, SEC

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Although 2018 has been a weird year for cryptocurrencies, it is proving to be a boom for the blockchain. It has received several high-level endorsements from government and industry officials, and it seems to be gaining traction as a feasible solution to many of our most pressing problems.

In an interview with Fox Business, SEC Chairman, Jay Clayton, said that he “loves this technology.” His comments support the overwhelmingly positive conclusions drawn by the 2018 Join Economic Report composed by the U.S. Congress. Meanwhile, industries continue to line up behind blockchain technology believing that it can revolutionize and upgrade their current, centralized systems. It’s these sentiments that led Tapscott CEO, Don Tapscott, to conclude that blockchains “could revolutionize the world economy.”

This year, there is a pervading perception that decentralization, tokenization, and smart contracts can make just about anything better. Just follow the money. CoinSchedule, which tracks all ICOs and the amount of money raised from each initiative, discovered a surprising trend this year. Collectively, 2017 was a record year for ICOs, the technical process that launches a new decentralized platform. However, the first three months of 2018 have seen ICOs raise 35% more than the total from all of 2017.

In other words, this year has been a stampede of decentralized companies that are launching compelling platforms.

Some projects are rising above the noise. They are distinct because of their industry impact, transformative services, and compelling vision. To be sure, these are just a handful of the industry-changing blockchain initiatives that are setting the tone this year. They are representative of the innovation and creative change being instituted by the blockchain.

HomeLend: Crowd Source Your Next Mortgage

The mortgage industry is a trillion-dollar industry that can feel all-encompassing. After all, everyone needs housing. However, this industry is bogged down by outdated methodologies and inadequate technologies that slow the process and hinder is growth. This is especially true for the millions of millennials who are struggling to attain their first mortgage.

Homelend decentralizes the mortgage industry and uses the blockchain’s tokenized assets and smart contracts to implement quick and efficient data transfers. More importantly, Homelend crowdsources the mortgage process by allowing anyone to serve as a lender and by enabling borrowers to tap into a previously unexplored lending source.

This platform could not be timelier. Nearly a decade after a real estate bubble incited the great recession, The Wall Street Journal is declaring a new housing crisis: a shortage of homes and loans for first-time buyers. Homelend can address half of this problem, and it’s essential that they do.

Sirins Labs: Cell Phone for the Blockchain Age

Sirin Labs issued a digital currency, the SRN token, that’s being used to fund the first cell phone for the blockchain and crypto age. The initiative, dubbed the Finney Project, aims to create a $1,000 smartphone that includes many of the features that crypto enthusiast requires. The device has a 5.5” screen 65GB storage, 6GB of RAM, and built-in cold storage for digital currencies.

At $1,000, the Finney Smartphone is comparably priced to other top-of-the-line smartphones like Apple’s iPhone and Samsung’s Galaxy line. The phone runs on a variation of Android’s operating system, so it’s the hardware that genuinely sets the device apart. Customers receive a 20% discount if they use the SRN token to purchase the device.

ARK: Connecting Disparate Blockchains

In their 2018 tech trends report, research and consulting firm, Deloitte, identified blockchain interconnectivity as a necessary next step for blockchain proliferation. ARK is creating a platform that aims to create a vast ecosystem of connected blockchains. Their platform caters to blockchain users, developers, and startups that can benefit from quick and easy connections to other blockchain services.

Their native blockchain boasts eight second block times, and their open sourced technology stands to improve through continued exposure. Their platform has been around since 2016, which makes them veritable veterans in the crypto space. As a result, they have a plethora of strategic connections including CoinCentral, Yahoo Finance, NewsBTC, Forbes, and CoinTelegraph.

There are so many compelling platforms launching right now, and it’s difficult to choose just three. However, these platforms represent, in different ways, the innovation and possibility that’s burgeoning with these initiatives and others like them.

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