Day: May 8, 2018

India’s blockchain ecosystem — which includes developers, services providers, and other cryptocurrency-related companies — are increasingly moving to countries with more friendly jurisdictions like Singapore, Switzerland, Japan, and, in particular, Estonia.

Crypto Startups Moving Away From India

The migration has been triggered by various moves made by the Indian government over the past several months, which have dampened enthusiasm for the country amongst many in the space. Some are comparing the move to the ‘brain drain’ in the dotcom boom that saw the transplant of topnotch tech professionals to countries with better opportunities.

“We are having talented people and companies from the blockchain space move out of India. There are enough countries out there who realize the importance and want to take a lead in the blockchain ecosystem,” said Joel John, an analyst at U.K.-based Outlier Ventures who spoke with Factor Daily.

Estonia in particular seems to be a favorite among those migrating from India thanks to its crypto and tech-friendly regulatory environment. It easy to register and set up businesses in the country, initial coin offerings (ICOs) and cryptocurrency investments are not heavily regulated, and the country’s blockchain-friendly regime supports mass adoption of the technology.

“We had decided to go the ICO way and for that, the current Indian regulatory setup makes it difficult,” says Abhinav Arora, chief marketing officer at Enkidu, a decentralized collaboration platform being built in Bengaluru. Its parent company Avalon Labs is registered in Singapore. Enkidu is looking to register in Estonia.

“We also thought of Japan but that did not make financial sense to us because of the [taxation] cost involved in liquidating our Ether holdings. We even briefly considered Cayman as an option but Estonia was best suited for our projects especially with the ICO plan.”

Estonia’s E-Residency Program

Estonia has in fact been attempting to draw crypto and tech-related startups from across the globe for several years now. In 2014 it launched its e-residency program, which made it easy to register a company in the country. On top of that, Estonian representatives have been holding sessions in India to attract entrepreneurs there, with a goal of registering 200 Indian startups in the near future. 

Another Indian company looking to Estonia is Indium, an Ethereum-based blockchain network with a focus on utility apps and public goods, founded by Nilesh Trivedi, a blockchain developer from Bengaluru.

“Crypto and blockchain are only one of the reasons for registering in Estonia. Being registered there will also allow me to offer other services and conduct business in the EU. Also the tax regime there is good,” says Trivedi. “To apply for e-residency, I had to give them a scanned copy of my passport, photograph, and very basic details. Now, one month later, my ID has arrived at the embassy,” he says.

Not only is the process user-friendly, but the government also has service providers that can help officially set up a business, open a bank account, and even keep a company’s books. The residency ‘will just cost me 100 Euros for three years and I can renew it again after that,’ Trivedi says.

Featured image from Shutterstock.

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The Buffets´ of this world will be soon the past

A jury will decide whether tokens issued through two allegedly fraudulent initial coin offerings (ICOs) count as securities.

Whether income earned from cryptocurrency should be taxed or not has been an issue with which many governments have been grappling in recent years as the crypto industry has become bigger and bigger. Even for countries that have already made their stances on crypto taxation known, the structures are still quite vague and not many people adhere to the set regulations. However, Azerbaijan has made its stance known: any revenue from cryptocurrency operations is subject to taxation.

Income Tax For Individuals

As quoted by a local media outlet, The Trend, Nijat Imanov, the country’s Deputy Director General of the Tax Policy and Strategic Research Department, made it clear that any proceeds from the trading of cryptos would be taxed by the government going forward.

Speaking at the Finance and Investment Forum which took place in the country’s capital, Baku, Imanov stated in no uncertain terms that proceeds from the trading of crypto were classified as profit tax for legal entities and income tax for individuals.

If someone bought a cryptocurrency and then sold it after its price increased, this amount is recorded as income and therefore should be [subject] to taxation.

The crypto market in Azerbaijan, whose population is just shy of 10 million, has registered consistent growth in recent months with a sizable number of people seeing it as an alternative revenue stream. The Trend further reported that the biggest growth had been registered between May and December 2017, a period that saw cryptos increase in price and popularity globally.

The Lack Of A Universal Taxation Model

As is the case with most aspects of crypto, taxation lacks a universal model. The majority of countries have continued applying a hands-off approach to the crypto industry, while others have sought to take advantage of the rising value of the industry to boost the government’s coffers. Germany is one of the countries that has had a very crypto-friendly taxation model. With Bitcoin considered neither a commodity nor a currency but as private money, any proceeds that are below 600 EUR are tax-free. The tax laws are even better for long-term holders, as any proceeds from crypto assets that have been held for more than a year are completely exempt from taxation.

Germany is not the only European nation that is enticing crypto trading through tax exemption. Denmark also employs a zero-taxation model on crypto proceeds. With the country striving to be one of the global crypto and blockchain hubs, this is definitely a step in the right direction. For others like Belarus, the tax-free model is only temporary. The Belarus government implemented a tax-free model through 2023 for any income from crypto trading and mining. The move is meant to spur growth in the crypto industry.

Other countries haven’t been as lenient. Just recently, the crypto community in Poland began organizing an online petition to protest the government’s unfair taxation model. The Polish government had declared that it would impose an 18% tax on crypto proceeds below $24,000, while any amount above that would accrue a 32% tax. The decision angered the crypto community, which accused the government of trying to stifle the development of the crypto industry.

Three Federal Reserve Bank of San Francisco researchers and a finance professor from Stanford University are in agreement that it was the marketplace futures launch in 2017 which gave rise to the dramatic slump in the price of bitcoin, according to Coindesk.

The Federal Reserve paper describes Bitcoin’s December 2017 fall from a USD 20,000 peak as no “coincidence” pointing out that it was consistent with trading behavior that typically accompanies the introduction of futures markets for an asset.

The researchers pointed out that such markets, namely the launch of Bitcoin futures, played a significant role in the slump, and could be viewed as similar to the US housing bubble which developed in the during the 2000s. In this case, mortgage-backed securities were also susceptible to optimistic and pessimistic traders.

The researchers explain:

“And until December 17, those investors [optimists] were right: As with a self-fulfilling prophecy, optimists’ demand pushed the price of Bitcoin up, energizing more people to join in and keep pushing up the price. The pessimists, however, had no mechanism available to put money behind their belief that the Bitcoin price would collapse. So they were left to wait for their ‘I told you so’ moment.”

It was at about this time, at the end of 2017,  that the Chicago Board Options Exchange and the CME Group, the world’s leading derivatives marketplace, gained approval for Bitcoin futures trading from the Futures Trading Commission (CFTC). The price of Bitcoin fell to just above USD 6,000 by late February 2018.

Such pricing dynamics, researchers argue, refers to a trend where demand for a financial instrument is initially driven by optimists who push up the price until the point where the market introduces a mechanism that allows pessimists to invest reversely.

The New York Times has reported that the Intercontinental Exchange, owner of the New York Stock Exchange, could become the latest bank to offer bitcoin futures, stating:

“[ICE] has had conversations with other financial institutions about setting up a new operation through which banks can buy a contract, known as a swap, that will end with the customer owning Bitcoin the next day — with the backing and security of the exchange.”

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The post Futures Launch Added to 2017 Bitcoin Slump, Says Fed appeared first on BitcoinNews.com.

Posts on GitHub and Reddit suggest that momentum is building behind he change to ethereum’s protocol.

Bitcoin Press Release: Odyssey (OCN) Protocol, a leading provider in the decentralized sharing economy and P2P global transaction space announces the development of its own  advanced cross-protocol blockchain

May 1st 2018, Singapore – Odyssey recently announced the kickoff of the development of its own blockchain. Odyssey (OCN) ’s blockchain, also known as $OCN chain, will:

• Simplify the integration of other blockchain providers into OCPay and Odyssey (OCN)  Wallet
• Lower cryptocurrency transaction fees for businesses, consumers, and service providers within the Odyssey (OCN)  ecosystem
• Streamline the onboarding of new providers throughout the entire Odyssey (OCN)  ecosystem

In blockchain technologies that exist today, there are not many immediate options or solutions for scalability and connectivity. With that being the case, Odyssey (OCN) Protocol is developing blockchain technologies of the future with scalability and interoperability in mind.

Sophie Guan, project lead, Odyssey Protocol Foundation, said:

“Today’s announcement shows the dedication and commitment we have to the community. This revolutionary protocol advancement, built with the future of scalability and connectivity in mind, will be a game changer in blockchain for years to come. We look forward to showcasing our team’s technical accomplishments, and progress, as we continue to exceed expectations of Odyssey’s vision for the future decentralized sharing economy.”

In the case of Odyssey (OCN) ’s network, $OCN Chain, it will be able to integrate OCPay with a multitude of other networks, services, and businesses globally. This is in direct comparison to Ethereum, which has become overloaded with the advance of DApps being built on the network, leading to higher transaction fees and slower blocktimes. Even in the case of other potentially higher performing networks that have lower transactions fees, the cost of migrating assets across networks is prohibitively high. It is therefore easy to see why the future lies in connecting blockchains with different consensus methods, which will allow for higher performing networks to interact more easily with others, seamlessly sharing data and assets.

For example, OCPay will be able to have cross platform interoperability with networks such as TRX, ETH and QTUM. OCPay will also be directly integrated with service provider companies, such as oBike, and as well in the future, directly with local merchants at top restaurants, hotels, and theatres.

$OCN Chain will continue to advance its technologies and partnerships globally, with cross-chain token sales and payment options, and even more advanced use cases in the future such as E-voting, E-auction, E-coin to establish the foundation for the more connected blockchain world in the future.

Odyssey (OCN)  looks forward to continuing its role leading the Future of the Decentralized Sharing Economy.

About Odyssey

Odyssey(OCN) is initiated by Odyssey Protocol Foundation, registered in Singapore.

Odyssey (OCN) ’s mission is to build the next-generation decentralized sharing economy & Peer to Peer Ecosystem. Odyssey (OCN) aims to reduce overall operating cost, increase marketplace efficiency and boost ROI of product & service providers in the Global sharing economy & peer to peer ecosystem.

To learn more visit the Website : http://www.ocoins.cc/

Read the White Paper – http://www.ocoins.cc/#whitepaper
Chat with us on Telegram: https://t.me/OdysseyOfficial
Connect on Twitter – https://twitter.com/OdysseyOCN
Meet the Team – http://www.ocoins.cc/#tech-team
See our Github – https://github.com/OdysseyProtocol

Media Contact
Contact Name: James Lawrence
Contact Email: [email protected]

Odyssey is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. Cryptocurrencies and tokens are extremely volatile. There is no guarantee of a stable value, or of any value at all. Token sales are only suitable for individuals with a high risk tolerance. Only participate in a token event with what you can afford to lose.This press release is for informational purposes only. The information does not constitute investment advice or an offer to invest.

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The post PR: The Future of Sharing: Odyssey (OCN) Protocol Announces The Development of Its Own Advanced Cross-Protocol Blockchain appeared first on BitcoinNews.com.

This article originally appeared on Bitcoin Magazine.

In today’s fast-moving and extremely competitive world, companies are constantly seeking an edge over their competitors. Incorporating blockchains into operations has become one of the most common strategies in this regard. The latest example is Williams Martini Racing, a British Formula One racing team which has partnered with Omnitude, an enterprise plug and play blockchain startup. In announcing the partnership in a blog post, the team said that it would be looking at how blockchain technology could become a crucial tool within the motor racing industry.

Data-Driven Environment

The team described itself as forward-thinking, having utilized data to get a competitive edge over the years. Blockchain technology would be ideal given Formula One’s data-driven environment. The team described Omnitude as a startup that’s spearheading connectivity between blockchain technologies and enterprise systems. The partnership comes at a time when the startup is seeking additional funding, with a token sale which began in March slated to end on May 31.

The partnership, which the team described as being multi-layer, will also see Omnitude’s branding displayed on the team’s drivers. The branding will also be displayed on the team’s environment over a race weekend, and on the team’s cars during the upcoming Spanish Grand Prix which will be held on May 13 in Barcelona, as well as the Monaco Grand Prix which will be held on May 27.

Williams Martini Racing is a British Formula One racing team which was founded in 1977 by Sir Frank Williams. It’s the third most successful Formula One Grand Prix company after Ferrari and McLaren, with 114 wins. The team’s deputy principal, Claire Williams, expressed the team’s optimism about the partnership.

Williams prides itself on speed of innovation and engineering excellence. We welcome the opportunity to form a close partnership with Omnitude and provide the ideal environment to showcase radical new technologies that have the power to transform the capabilities of businesses around the world.

Omnitude is a middleware enterprise blockchain that’s built on the Hyperledger Fabric and mainly targets enterprise e-commerce platforms. Their plug and play solutions allow enterprises to integrate blockchain technology into their operations without necessary having to replace their existing systems. The startup has also partnered with other firms as it pushes for mass adoption of blockchain technology. They include Swisscom, a major telecommunications services provider in Switzerland, and CS-Cart, an e-commerce software solutions provider. Speaking about the partnership with Williams Martini Racing, Chris Painter, the founder and CEO of Omnitude, expressed his happiness, saying the partnership would give Omnitude the chance to explore blockchain technology in a new environment.

Working with Williams Martini Racing is a major validation of our product and vision, and this partnership is a natural pairing of two of the UK’s most innovative and cutting-edge organizations.

Fundstrat’s Tom Lee believes that an annual cryptocurrency conference being held next week could see the price of Bitcoin test its all-time highs again.

Consensus will run from May 14th to the 17th in New York City. The price of Bitcoin has traditionally rallied during the event.

Tom Lee Believes Previous Trends Will Hold True for Bitcoin

The Consensus conference is now in its fourth year. It’s expected to attract around 7,000 digital currency advocates. Tom Lee identified in a note to clients that the event’s previous editions coincided with Bitcoin gains of between 10 and 70 percent. He also feels that this time around the rally will outperform previous years. MarketWatch reports the Fundstrat strategist’s sentiment:

“Already one of the largest crypto conferences in the world, attendance this year is up dramatically and coming at a time when Bitcoin/Crypto is down YTD. Hence, we expect the Consensus rally to be even larger than past years.”

If Lee’s analysis of previous years holds true this time around, the rally could see Bitcoin push back over $15,000. If his theory about this year’s gains being larger than those before it then we could see Bitcoin hitting close to its all-time highs again.

However, Lee did acknowledge that it was not a dead certainty that Bitcoin would achieve such huge gains. He cited regulatory concerns as potentially limiting a post-Consensus rally:

“What could go wrong? Commentary around regulatory risks during Consensus are negative. We do not expect this to be the case, however.”

With Bitcoin and other digital currencies hitting the mainstream in a way not previously experienced, regulation will undoubtedly be a hot topic of conversation at the Consensus meetup. The current scrutiny Ethereum is under about whether it will be classified as a security by the SEC is one such regulatory issue that could have huge repercussions for the young crypto industry.

However, Lee is usually quite accurate with his Bitcoin price calls. Back in August of 2017, he predicted that the world’s most popular digital currency would exceed $6,000 by mid-2018. Of course, this price call was smashed just months after he made it. He also made a prediction that following tax day in the U.S. this April, the price of Bitcoin would start back on an upwards trend. This call also came true although it is impossible to tell what the reversal in price was caused by exactly.

Long term, Lee is incredibly bullish on Bitcoin too. He believes the price will soar well above its current all-time high and reach $25,000 by the end of 2018. He has also said previously that a $100,000 Bitcoin is conceivable.

Featured image from Shutterstock.

The post Tom Lee: Next Week’s Consensus Conference Could Push Bitcoin to All-Time Highs appeared first on NewsBTC.

This article originally appeared on Bitcoin Magazine.

Every major banking institution is now looking at blockchain technology, even if it is experimental, for fear of being left behind