Saturday, March 31, 2018

Report Details Surge in Crypto Mining on College Campuses

Report Details Surge in Crypto Mining on College Campuses

A report published by cybersecurity company Vectra has detailed what it describes as an “alarming surge in cryptocurrency mining on college campuses.”

Also Read: Markets Update: Cryptocurrencies Lose Over 20 Percent This Week 

Colleges Become Hotbed for Mining Activities

Report Details Surge in Crypto Mining on College CampusesVectra’s report asserts that opportunistic students, malicious hackers, and even cryptocurrency mining scripts hosted by websites, are sapping power from universities to freely mine virtual currencies.

The analysis concludes that higher education is by far the largest industry that “exhibit[ed] cryptocurrency-mining attack behaviors from August 2017 through January 2018.” Vectra’s research claims that 85 percent of said attack behaviors identified across all industries originated from higher education institutions, followed by “Entertainment & Leisure” with 6 percent, Technology (3 percent), and Financial Services (3 percent).

The report notes that “The number of computers processing cryptocurrency hashes on college campuses increased before the value of bitcoin rose above $4,000 USD in 2017.” The sudden crash in bitcoin prices heading into January appears not to have deterred opportunistic students seeking to take advantage of campus electricity, with the report adding that “Even as the value of bitcoin fell 50% from its peak […], the number of computers performing cryptocurrency mining” on campuses did not decline.

Opportunistic College Students Take Advantage of Free Electricity

Joey Dilliha, an 18-year-old student at Western Kentucky University, recently told media that he leaves a Bitmain Antminer running in his dorm room, consistently garnering $30 each week in profit. “I believe more people should be doing it. It’s a super fun, and cool cheap way to be introduced to the market of mining,” Mr. Dilliha stated.

Dilliha said that his college does not permit his mining activities due to such being perceived as a fire hazard. “On dorm room check days, I have to turn it off and put a blanket over it. However, my RA loves to come in and talk about it with me,” he added.

Report Details Surge in Crypto Mining on College CampusesIn January, Stanford University issued a notice responding to what it described as “a sharp increase in incidents involving cryptocurrency mining at Stanford.” The notice sought to remind students that “Per university policy, Stanford resources must not be used for personal financial gain. As such, community members are prohibited from using university resources (including computing equipment, network services, and electricity) for cryptocurrency mining activities outside of faculty sanctioned research and course work.”

Vectra’s head of security analytics, Chris Morales, stated that “Students are more likely to perform crypto mining personally as they don’t pay for power, the primary cost of crypto mining.”

Do you think that colleges can do anything to stop opportunistic students from mining on campus? Share your thoughts in the comments section below!


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via Samuel Haig

Cambodia’s Crypto Industry Marches Forward Despite Legal Grey Area

Cambodia's Crypto Industry Marches Forward Despite Legal Grey Area

Cambodia’s cryptocurrency sector appears to be marching forward, despite the absence of clear regulatory guidelines pertaining to virtual currencies. 

Also Read: PBOC to Strengthen Cryptocurrency Regulations in 2018

Regulatory Ambiguity Fails to Deter Cambodia’s Cryptocurrency Sector

Cambodia's Crypto Industry Marches Forward Despite Legal Grey AreaA report published by The Phnom Penh Post suggests that Cambodia’s virtual currency industry is pressing forward in spite of the regulatory ambiguity surrounding cryptocurrencies in the country.

The founder of the Khmer Crypto Foundation, In Mean, told local media that individuals operating in Cambodia’s cryptocurrency sector do so with great care due to the legal uncertainty. “It’s not clear yet whose job it is to regulate cryptocurrencies,” Mr. Mean said. “It could fall to the [National Bank of Cambodia (NBC)] or the [Securities and Exchange Commission of Cambodia (SECC)], but it’s not clear yet which one it will be.”

Although Cambodia has not explicitly outlawed the possession cryptocurrencies, Cambodia’s government announced the prohibition of “all banks and microfinance institutions from trading, buying, selling and advertising cryptocurrencies,” in December 2017.

Cambodians Citizens Launch Altcoins in Spite of Legal Grey Area

Cambodia's Crypto Industry Marches Forward Despite Legal Grey AreaMr. Mean launched his own cryptocurrency in November 2017, with local media stating that the “regulatory grey area […] prevents him from monetizing it.” Mr. Mean states that he “give[s] out the coin” and “tell[s] people that it has no value,” claiming that the project, Khcoin, functions as an educational tool as opposed to a speculative asset. Mr. Mean created a wallet for Khcoin, and claims that roughly 5,000 Cambodian citizens currently hold Khcoin. Mr. Mean states that he has also developed an exchange platform for Cambodian cryptocurrency trading, however, waiting for clear regulatory guidelines before he intends to launch such.

The exchange has so far proved a trying venture for Mr. Mean, who states “I used my own money and lost thousands of dollars to hackers [during testing], but I want to do this because I think it is important for Cambodia to show the world that it can have its own cryptocurrency.”

Entapay to Conduct ICO in Cambodia

Cambodia's Crypto Industry Marches Forward Despite Legal Grey AreaAt the start of March, Cambodia saw the launch of another local altcoin, called Entapay. The project was initially the subject of confusion – with a press release for the project announcing Entapay to be backed by the Cambodian government. Richard Lee, the PR director of Entapay, appears to have subsequently distanced the company from the bold claims, stating “We never said that we had the official backing of the government. We just said that we had their support” – despite adding “We don’t have a financial license for Entapay yet, but we will soon.”

The company is currently holding an initial coin offering for its Entapay token. The ICO is currently conducting pre-sales, accepting only ETH from investors. Investors will be distributed ‘Enta Diamond certificates’ which investors can then use to purchase Entapay tokens.

What are your thoughts on the ambiguity surrounding Cambodia’s cryptocurrency industry? Join the discussion in the comments section below!


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via Samuel Haig

New ESMA Measures Impose 2:1 Restriction on Leverage for Crypto CFDs

New ESMA Measures Impose 2:1 Restriction on Leverage for Crypto CFDs

The European Securities and Markets Authority (ESMA) has announced that it will impose restrictions on the leverage offered for contracts-for-difference (CFDs) and binary options offered to European retail investors. Under the new measures, the leverage offered on cryptocurrency CFDs will be limited to no more than 2:1.

Also Read: PBOC to Strengthen Cryptocurrency Regulations in 2018 

European Securities Regulator Imposes Restrictions on Leverage Offered by CFD Providers

New ESMA Measures Impose 2:1 Restriction on Leverage for Crypto CFDsESMA has agreed on what it describes as “temporary product intervention measures on the provision of [CFDs] and binary options to retail investors in the European Union (EU).”

The new measures will see restrictions on the leverage offered on cryptocurrency CFDs to no more than 2:1. The agreements will also mandate that traders provide an initial margin of “50% of the notional value of the CFD when the underlying [asset] is a cryptocurrency” – more than twice the initial margin required of any other CFD.

New Measures See Harshest Rules Imposed on Cryptocurrency CFDs

New ESMA Measures Impose 2:1 Restriction on Leverage for Crypto CFDsESMA has stated that cryptocurrencies CFDs states that “CFDs with cryptocurrencies as an underlying raise separate and significant concerns as CFDs on other underlying” assets.

The regulator stated that “Cryptocurrencies are a relatively immature asset class that pose major risks for investors.” ESMA expressed “concerns about the integrity of the price formation process in underlying cryptocurrency markets,” arguing that such “makes it inherently difficult for retail clients to value these products.”

ESMA concluded that “Due to the specific characteristics of cryptocurrencies as an asset class the market for financial instruments providing exposure to cryptocurrencies, such as CFDs, will be closely monitored.” Based on its findings, ESMA “will assess whether stricter measures are required.”

New Rules to be Formalised in “Coming Weeks”

New ESMA Measures Impose 2:1 Restriction on Leverage for Crypto CFDsThe measures will also see restrictions of 30:1 placed on “major currency pairs;” 20:1 for “non-major currency pairs, gold and major indices;” 10:1 for “commodities other than gold and non-major equity indices;” and 5:1 on “individual equities and other reference values.”

ESMA states that it “intends to adopt these measures in the official languages of the EU in the coming weeks.”

What is your response to the new restriction on the leverage offered by European CFD providers? Share your thoughts in the comments section below!


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via Samuel Haig

Russians Owe 13% Tax on Their Crypto Incomes

Russians Owe 13% Tax on Their Crypto Incomes

Russian citizens are expected to pay 13 percent tax on their crypto-related incomes. Amendments to the tax code are currently being prepared. The exact rates should be confirmed by the end of the year. However, lawyers have warned that even now citizens risk criminal prosecution if they fail to report gains from dealings with cryptocurrencies.

Also read: 0 to 50 percent – Time to Pay Crypto Taxes in the European “Union”

Tax Obligations Apply to All Residents, Including Foreigners

Lawmakers are finalizing the legislation that should regulate crypto-related matters in the Russian Federation. Two bills have been filed in the State Duma in the last couple of weeks. The draft law “On Digital Financial Assets” legalizes blockchain technologies, mining operations and initial coin offerings. Another bill amends Russia’s Civil Code to introduce terms like “digital money” and protect the rights of crypto investors. The bills should be adopted by early summer but changes to the tax laws are expected to follow later.

In the meantime, private individuals in the Russian Federation are not free from the obligation to inform tax authorities on their income from cryptocurrency operations. The standard tax rate of 13 percent is applicable to gains from trading cryptos like bitcoin, according to a letter by the Finance Ministry. The clarification notice has been issued in response to a private request (№03-04-05/66994) filed in October last year.

Russians Owe 13% Tax on Their Crypto Incomes

Although the letter is just a recommendation, tax lawyers say it reflects the stance of the ministry and should be used as a reference before new rules are adopted, Kommersant reports. The income tax rate, and other crypto-related parameters of taxation will be officially confirmed with the amendments of the tax code. Russia’s parliament and the Ministry of Finance are currently working on these changes expected to take effect by the end of the year.

Until that happens, Russian citizens are required to report crypto income on their tax returns and pay the regular income tax which has a flat rate of 13 percent. Foreign nationals present in the Russian Federation for at least 183 days in a year are treated and taxed as permanent residents. In all other cases the rate is doubled to 30 percent. Dividends are taxed at 6 percent (15 percent for non-residents).

Miners Can Pay Taxes as Individual Entrepreneurs or Legal Entities

The draft legislation, currently under review in the lower house of Russia’s parliament, defines crypto mining as an “entrepreneurial activity”. That means miners will be have to either register as individual entrepreneurs, or set up companies. In any case, they will be required to report their profits and pay their taxes. The applicable tax rates, and tax rights, depend on the type of registration they choose. Corporate profit tax in Russia is 24 percent.

Russians Owe 13% Tax on Their Crypto Incomes

Many aspects of crypto taxation need further clarification. Legal experts say that Russian tax officials lack the expertise necessary to address the matter adequately. The Federal Tax Service inspectors are struggling to understand how crypto exchanges work, and have no idea how to identify the owner of a cryptocurrency wallet.

At the same time, traditional regulations collide with the principles of anonymity and independence associated with cryptocurrencies. Nevertheless, individuals and businesses risk prosecution if they fail to report their incomes and gains from crypto-related activities. That’s why tax lawyers advise both citizens and companies to pay their taxes on time.

Do you agree that tax authorities should first do their homework on cryptocurrencies before they tax crypto incomes? Share your thoughts in the comments section below.


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via Lubomir Tassev

Crypto Still Tax Free in Korea but Regulators Have Set Timeframe for Taxation

Cryptocurrency transactions are still tax-free in South Korea due to a lack of tax regulations. As the law stands, citizens are able to profit millions of won from cryptocurrencies without being required to pay taxes on them. However, the regulators have set a tentative timeframe for the introduction of the crypto tax law.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Still No Tax on Crypto Transactions

A lawyer in his early 40s recently revealed that he “made a profit of nearly 30 million won last year on investments in bitcoin and ether, but he did not pay any tax on virtual currency investments,” Money Today reported. The news outlet reiterated:

There is no obligation to pay tax even if you earn hundreds of thousands of won or even hundreds of millions of won in virtual currency investments.

Crypto Still Tax Free In Korea But Regulators Have Set Timeframe For TaxationMeanwhile, when selling stocks, there is a sales tax of 0.3% for listed securities and 0.5% for unlisted ones, the news outlet detailed.

“In the case of the ‘major shareholder,’ the obligation to pay tax on capital gains is also imposed. Unlisted shares also pay taxes on capital gains.”

Tax Regulation Timeframe

Crypto Still Tax Free In Korea But Regulators Have Set Timeframe For TaxationTo rectify the situation, the tax authorities have set up “a virtual currency taxation standard in the first National Tax Administrative Reform Committee in 2018,” Money Today informed. Furthermore, the 2018 economic policy direction, announced by the Ministry of Strategy and Finance, has a schedule set for crypto taxation plan for the first half of this year, the news outlet added, noting that:

Korea will be able to pass the tax bill in the first half of this year if it is included in the amendment bill of the August tax law. Virtual currency taxation will be implemented next year.

Recently, local media reported that “Virtual currency taxation will come out in June.” However, the Ministry of Strategy and Finance subsequently issued a statement, clarifying that, “we are currently considering the taxation data through virtual currency taxation task force regarding virtual currency taxation,” adding that the media report was “not true.” An official of the ministry confirmed:

We did not set a specific time frame but we are thinking about announcing a virtual money tax during the first half of the year.

Crypto exchanges will also pay taxes. While reiterating that “Virtual money exchanges will have to pay taxes,” an official of the ministry was quoted by local publications early this year explaining that “we have yet to decide the exact tax rates as we are in talks with the National Tax Agency.”

What do you think of South Korea’s tax plan for crypto transactions? Let us know in the comments section below.


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via Kevin Helms

Wendy McElroy: How Centralized Exchanges Intend to Devastate You

How Centralized Exchanges Intend to Devastate You

The Satoshi Revolution: A Revolution of Rising Expectations
Section 2: The Moral Imperative of Privacy
Chapter 6: Privacy is a Prerequisite for Human Rights

How Centralized Exchanges Intend to Devastate You. Chapter 6, Part 6.

The root problem with conventional currency is all the trust that’s required to make it work…We have to trust them [third parties] with our privacy, trust them not to let identity thieves [including government] drain our accounts.
Satoshi Nakamoto

Satoshi never envisioned centralized exchanges. The spectacle would have appalled him. Bitcoin was forged to avoid centralized third parties, such as banks and centralized exchanges, that require users to trust them with wealth and privacy. Peer-to-peer transfers based on cryptographic proof were supposed to replace the need for a middleman who demanded trust. They were designed to give financial power back to the individual.

The problem: there is a market demand to speculate, to trade in currencies, and to perform sophisticated financial transactions for which peer-to-peer (as it currently exists) can be ill-equipped. There is also a demand for convenience and access that does not require technical knowledge or effort. Centralized exchanges may be the polar opposite of what Satoshi envisioned, but centralized exchanges fill a niche, or else they would not be popular. They currently dominate much of the crypto world, with a majority of users entrusting exchanges with their wealth and privacy.

The niche of centralized exchanges comes from blending the functions of a stock market and a bank. A centralized exchange is a marketplace for trading or converting assets through a single location or service. In many ways, it is similar to the New York Stock Exchange. Currencies can be traded and shorted, for example; margin trading, stop loss, and lending are also available. Satoshi did not address the stock-market functions of crypto, which he probably did not foresee. In fairness, Satoshi explicitly referred to Bitcoin as a developing and evolving technology, which was in its infancy.

In other ways, centralized exchanges resemble banks. After purchasing crypto from an exchange, many customers choose to leave their coins in an account rather than transfer them to a private wallet on their own hard drive. The reasons vary: convenience, the comforting similarity to a bank, the ease of converting to fiat, quick trading, and discomfort with the technology required to set up a private wallet. Whatever the reason, centralized exchanges become trusted third parties that endanger the wealth and well-being of individuals. Consider one aspect of the problem. Private keys are the crypto. The coins have no physical presence, only algorithmic ones. When an exchange controls the keys, it owns the coins; the customer has nothing more than a promise of access to them upon demand.

Reality often breaks promises. Hackers use software vulnerabilities and human error to loot accounts that are advertised as secure. High volume causes downtime, during which traders lose opportunities and prices can plummet. Then, there are calculated denials of access. Outstanding orders may be canceled, especially if rates disadvantage the exchange; withdrawals and deposits can be halted without notice; exchanges vanish, along with accounts; owners commit fraud or steal from accounts. This returns people to the pre-Bitcoin days, in which trust and betrayal are defining factors of wealth management.

Recently, the risks associated with centralized exchanges have increased exponentially, and for one reason.

A Forbes article (Feb. 28, 2018) announced the inevitable.

“It’s finally happening: The much-ballyhooed turnover of documents in the battle between the Internal Revenue Service (IRS) and Coinbase, a company which facilitates transactions of digital currencies like Bitcoin and Ethereum, is moving ahead. Coinbase has announced that it has notified affected customers that it will comply with a court order regarding the release of specific data.”

2018 is the year in which tax agencies get serious about cryptocurrency profits and holdings. Governments around the world are watching as Coinbase turns in data on its customers, which will almost certainly lead to audits and high-profile prosecutions. Specifically, Coinbase is reporting all customers with transactions of $20,000 or more in a single year between 2013 and 2015. Taxpayer IDs, real names, dates of birth, street addresses, and all transaction records from whichever period is in question will be delivered. The wealth of data is available because Coinbase, like every other licensed centralized exchange, complies with Know Your Customer and Anti-Money Laundering laws, which destroy financial privacy.

Beyond such requirements, Coinbase is extremely aggressive about gathering information and verifying identities. The exchange uses facial-recognition technology, for example, to compare a real-time face shot from a webcam or smart phone with whatever ID an applicant submits. Coinbase UK adds, “we may collect personal information disclosed by you on our message boards, chat features, blogs and our other services to which you are able to post information and materials.”

Expect such intrusion to become the norm for centralized exchanges that prize their licenses and relationships with government. Expect them to act as data-gathering arms of government. The danger is not only the freezing and confiscation of accounts, but also legal proceedings against and imprisonment of account holders. The IRS states that “anyone convicted of tax evasion is subject to a prison term of up to five years and a fine of up to $250,000. Anyone convicted of filing a false return is subject to a prison term of up to three years and a fine of up to $250,000.”

Fortunately, the market demand for stock market and banking functions can be satisfied (or soon will be) without sacrificing the privacy and safety.

Decentralize for Privacy

A decentralized exchange is a marketplace that does not rely on third party services. Trades are peer-to-peer; they are direct transfers between people who use an automated process to facilitate the exchange. They are trustless. They are transparent, with software and transactions being open source. They are Satoshi. A decentralized exchange allows individuals to hold their own private keys, which makes it a less attractive target for hackers. It also requires a minimal amount of personal or financial data to establish an account and to conduct commerce. Often, only an email address is requested, and it can be one that is generated specifically to register, with no connection to a real identity, to a True Name.

Decentralized exchanges employ a wide variety of strategies to facilitate peer-to-peer transfers. Some create proxy tokens; others employ a multi-signature escrow. Peer-to-peer banking uses an auction-type dynamic to facilitate loans between members of a specific amount and at an agreed-upon rate. Smart contracts can assume the traditional functions of banks. Technology Review (Dec. 7, 2017) explained,

“Switching back and forth between fiat money and cryptocurrency will require a traditional point of exchange for the foreseeable future. But some technologists say an alternative model for trading cryptocurrencies that would give people more control over their wealth is possible. It’s meta: exchanges can be decentralized, they say, using a blockchain. The idea hinges specifically on so-called smart contracts, software code that can be stored in a blockchain and set up to programmatically govern transactions. Imagine, for example, you want to send your friend some cryptocurrency automatically at a specific date and time. You could use a smart contract to do that.”

The point here is not to advocate a particular decentralizing strategy. It is to offer a sense of the rich and evolving alternatives to centralized exchanges.

Many people will still choose a centralized exchange because the platforms are easy to access and use; they are sanctioned by government; and they offer familiar, advanced functions of a stock market. For those who prize privacy, however, this is a poor choice. An analogy illustrates the stark difference in how privacy fares under a decentralized and a centralized system.

The Cautionary Tale of Social Media

’Want To Freak Yourself Out?’ Here Is All The Personal Data That Facebook/Google Collect.” That was a headline in Zero Hedge on March 28, 2018. The types of data collected are too extensive to enumerate. An indication: Android cellphone users who downloaded specific Facebook apps have had data on their personal calls logged by Facebook, sometimes for years.

A relatively undiscussed cause of social media’s privacy hemorrhage, along with its abridgment of free speech, is the centralization of information and discussion that accompany corporate behemoths, like Facebook and Google. An intriguing article in The Federalist (March 28, 2018) asked, “Was Social Media A Mistake?” The author, Robert Tracinski, harkened back to the 2000s-the golden age of blogs, when everyone and their grandmothers expressed themselves through blogging.

Tracinski wrote, “It felt like liberation. The era of blogging offered the promise of a decentralized media. Anybody could publish and comment on the news and find an audience. …We were bypassing the old media gatekeepers. And we had control over it! We posted on our own sites. We had good discussions in our own comment fields, which we moderated.” It was a whirlwind of free speech, but it was also a bastion of privacy because individuals retained control.

Then social media arrived like a juggernaut, and the mom-and-pop blogs migrated their insights and information to Facebook, Google, Twitter and other trusted third parties. Like centralized exchanges, the social media giants were relatively easy to access and use; they offered sophisticated software and functions that individual bloggers lacked the technical knowledge or money to implement; social media also slid seamlessly onto cell phones via apps that seemed to open up the world.

Tracinski noted the result. “A few of the best and most interesting blogs became full-fledged online publications, but a lot of the small, quirky, one-person amateur bloggers moved onto social media. That turned out to be a big mistake, because the era of social media has recentralized the media. Instead of a million blogs—what Glenn Reynolds of Instapundit fame called an “Army of Davids” — we now have a social media economy mostly controlled by three big companies: Twitter, Facebook, and Google.”

Lately, the price tag of centralizing insights and information has become apparent. The left-leaning politics of social media meant they purged (suspended) or punished (throttled) the “wrong” views; this is akin to banks and other financial institutions refusing to deal with porn, pot, or gun industries due to political pressure from government. “The old media gatekeepers” were replaced by the equally intrusive Silicon Valley Puritans. Although both are preferable to direct government intervention, their quasi-monopolies are bolstered by tax privileges, by favorable regulation, and, sometimes, by direct tax funding. Individuals lost control. Perhaps it is more accurate to say they relinquished it.

Nowhere is this more apparent than with personal data. In return for offering convenience, all social media wanted was to know and to market every detail of customers’ lives. The role of centralization in this rape of privacy should not be ignored. It was key to the effectiveness. This is equally true of the centralization of financial data-only with an important difference. The destination of the financial information is a government file, especially a tax one. Social media cooperates with government, to be sure, but its ultimate purpose was and is making a profit.

Conclusion

Privacy is a front-line defense of individual freedom and well-being. Decentralization is the social condition under which privacy thrives. No one can or should tell individuals which strategy to use. But, if you value privacy and safety, decentralize.

[To be continued next week.]

Reprints of this article should credit bitcoin.com and include a link back to the original links to all previous chapters


Wendy McElroy has agreed to ”live-publish” her new book The Satoshi Revolution exclusively with Bitcoin.com. Every Saturday you’ll find another installment in a series of posts planned to conclude after about 18 months. Altogether they’ll make up her new book ”The Satoshi Revolution”. Read it here first.

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via Wendy McElroy

PBOC to Strengthen Cryptocurrency Regulations in 2018

PBOC to Strengthen Cryptocurrency Regulations in 2018

The People’s Bank of China (PBOC)’s Institute of International Finance has released a report identifying cryptocurrencies as a top priority for 2018. The document claims that widespread retail investment into cryptocurrencies has the potential to pose systemic risk to the Yuan, and also emphasizes the PBOC’s intention to expand its research and development into cryptocurrencies.

Also Read: FBI Warns of Crypto Scammers Posing as Exchange Support Staff 

Strengthening of Virtual Currency Regulations Top Chinese Monetary Policy for 2018

PBOC to Strengthen Cryptocurrency Regulations in 2018The report emphasizes the risks perceived to be associated with virtual currencies by the Chinese government – specifically the potential for price volatility to manifest systemic risk to the yuan in the event of widespread retail investment, the potential for criminal misuse, and the lack of a robust regulatory framework providing consumer protections to investors.

The document advocates the strengthening of China’s regulatory framework regarding cryptocurrencies, calling for the development of a comprehensive procedure for monitoring the circulation of virtual currencies. The report also supports propositions that the G20 should lead efforts to establish a global regulatory framework with regards to digital currencies, advocating information sharing and cooperation between international regulatory institutions regarding digital currencies.

The report asserts that the popularity of cryptocurrencies has grown rapidly – attributing their dramatic rise to global demand for bitcoin’s utility of providing greater efficiency and reduced costs in conducting transactions.

The report also emphasized the targeting of MLM and pyramid schemes using cryptocurrencies as a priority for Chinese regulators.

PBOC Convenes Monetary Policy Conference

PBOC to Strengthen Cryptocurrency Regulations in 2018The PBOC also recently published a document providing a synopsis of the topics discussed during the central bank’s recent telephone conference on national currency, gold, silver, and monetary policy.

The document emphasizes the PBOC’s desire to expand its efforts asserts in the “promot[ing] the R&D of the central bank’s digital currency” as a primary monetary policy for 2018, indicating that the development of a long-rumored Chinese national cryptocurrency is still a top priority for China’s central bank.

The PBOC also described “the rectification of various […] virtual currency” markets as a desired policy outcome, emphasizing the need for strengthened anti-money laundering processes.

Do you think that China will be able to effectively enforce its cryptocurrency ban? Share your thoughts in the comments section below!


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Japanese Crypto Exchange GMO Vows to Improve After Regulator Orders Upgrades

Japanese Crypto Exchange GMO Vows to Improve After Regulator Orders Upgrades

The cryptocurrency exchange subsidiary of the Japanese internet giant GMO has detailed its plans to improve its operations. GMO Coin has submitted a business improvement report to the country’s financial regulator. GMO Internet has also set up an information security audit office for the entire group.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

GMO Strengthens Operations and Security

Japanese Crypto Exchange GMO Vows to Improve After Regulator Orders UpgradesGMO announced on Friday the establishment of its Group Information Security Audit Office “to strengthen information security management and audit function in the whole group.” The company wrote:

We will protect important customer information from increasingly sophisticated cyber-attacks by our highly secured countermeasures and pursue to improve group information security literacy and foster security personnel.

Japanese Crypto Exchange GMO Vows to Improve After Regulator Orders UpgradesThe Japanese Financial Services Agency (FSA) issued a business improvement order to GMO Coin, GMO Internet’s cryptocurrency exchange subsidiary, on March 8 after conducting an inspection. The agency began inspecting all crypto exchanges after the hack of Coincheck, one of Japan’s largest crypto exchanges. The FSA mandates the “Implementation of Effective System Risk Management Structure” under Article 63-16 of the Law on Funds Payment. GMO Coin obtained a license from the FSA in September of last year.

Headquartered in Tokyo, GMO is one of Japan’s largest internet companies. It operates GMO Click, which is “The largest FX trading services provider for retail investors in Japan,” the company’s website states. Last year, GMO also began its crypto mining operations.

GMO’s Business Improvement Plan

Japanese Crypto Exchange GMO Vows to Improve After Regulator Orders UpgradesFollowing the FSA’s order, GMO Coin submitted a business improvement plan as required by the agency. The exchange will report its progress and implementation status to the regulator “every month by the 10th day of the following month in writing until the implementation of the business improvement plan” is complete, GMO Coin detailed. The first reporting date is the last day of March.

Specifically, GMO Coin plans to establish an effective risk management system. “The management team analyzed and investigated the root causes of system failures, formulated concrete countermeasures, and responded to the actual situation of business expansion,” the company described.

Japanese Crypto Exchange GMO Vows to Improve After Regulator Orders UpgradesThe business improvement plan includes “(1) business management systems, (2) contingency corresponding readiness plan [in] the event of a failure, (3) information security, cyber security management posture, and (4) quality control and configuration management systems,” GMO Coin outlined.

In its announcement, the exchange stated that they “sincerely apologize for the inconvenience and worry that our customers and stakeholders have experienced,” adding:

We deeply reflect on taking this administrative punishment seriously and will steadily implement improvement plans to strengthen and enhance the system risk management system to further enhance the service that customers can feel secure and safe [with].

What do you think of GMO Coin’s business improvement plan? Let us know in the comments section below.


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via Kevin Helms

PR: VR Casino OKO Is a New Project Based on OKOIN Tokens

VR Casino OKO Is a New Project Based on OKOIN Tokens

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com does not endorse nor support this product/service. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

VR Technology, the founder of the OKOIN, is launching a new project based on the same name token – VR Casino OKO. This is the third blockchain project, which tokenomics is based on the OKOIN tokens. Two predecessors are VR Platform OKO (the platform for distributing interactive VR adult movies) and OKO Pay (the payment system for VR Technology partners through which they can accept OKOIN tokens for goods and services). It is noteworthy that all three projects are not interchangeable. Each of them is independent, and they work in parallel, thereby expanding the reach of the audience and increasing the value, stability and liquidity of the OKOIN token.

VR Casino OKO project

VR Casino OKO is a unique project that combines the atmosphere of the game in real casinos with the availability of online gambling and transparency of the blockchain. The project is based on the VR OKO helmet whose sales have already exceeded 70,000 units. In the future VR Technology plans to make the system available for other VR-devices (Oculus Rift, HTC VIve and others), provided that their hardware and software will meet the technical requirements of the project.

In more than 40 countries casinos are prohibited. As a result, online casinos are trying to occupy a free niche. According to the analytical company Newzoo the gross profit of online casinos stably increases by 8-10% per year and is more than 43.7 billion euros by 2017.

At the same time, online casinos have shortcomings. The main one is that the win or loss is determined by the work of the computer program algorithm and it’s honesty and transparency is questionable. In addition, the monitor screen and software interface can not convey the atmosphere and glow of the passions of the gambling establishment.

More modern formats of online gambling – VR-casino partially solve the problem of visualization. However, the user still sees virtual reality computer rendering in the helmet (painted, artificial casino, albeit in very high quality). And the winning of bets is determined by a computer program.

The main difference between the VR Casino OKO project and its analogues is that using the VR helmet the user sees a live broadcast from the VR cameras installed in this casino. Cameras have a 180 degrees viewing angle and show the table, the croupier and everything that happens in real time.

In addition to the effect of presence, the user of the VR Casino OKO can also bets in real time. To do this OKOIN tokens are used as a casino chips. Smart contracts make the game as transparent and fair as possible.

ICO project will be held in parallel with the ICO project OKOIN: from March 25 to April 25 (due to the fact that the tokens in both projects are the same). Accordingly, the affiliate program, the bounty program and the played tickets for the private party OKO Stars are equally relevant.

Special offers

Offer #1
Valid March 25 to April 10, 2018

Add yourself to the “List of the First” and buy OKOIN tokens for more than 20 ETH at a starting price of $1.
Important: other sales do not apply for the list of the first!

Offer #2
Valid March 25 to April 25, 2018

Buy OKOIN tokens and get bonuses:
1 ETH and more: +30% bonus
3 ETH and more: +40% bonus
5 ETH and more: +50% bonus
15 ETH and more: VIP ticket to the OKO Stars party as a gift

Contact Email Address
ico@okoin.io
Supporting Link
https://oko.casino/?utm_source=bitcoincom&utm_medium=article&utm_campaign=okocasino

This is a paid press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

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FBI Warns of Crypto Scammers Posing as Exchange Support Staff

FBI Warns of Crypto Scammers Posing as Exchange Support Staff

The Federal Bureau of Investigation (FBI) has published a document seeking to warn citizens of the increasing prevalence of scams executed through fraudulently posing as technical support staff for a company. The FBI’s notes that virtual currencies are becoming “increasingly targeted by tech support criminals.”

Also Read: Mailchimp Latest Company to Ban Cryptocurrency Advertising

Cryptocurrency Tech Support Theft on the RIse

FBI Warns of Crypto Scammers Posing as Exchange Support StaffThe FBI has issued a warning emphasizing the “widespread” nature of “Tech Support Fraud” – which “involves a criminal claiming to provide customer, security, or technical support in an effort to defraud unwitting individuals.” The FBI’s IC3 division reports an increase in tech support fraud of 86% during 2017 when compared with 2016 – with last year’s claimed losses “amount[ing] to nearly $15 million.”

The report states that “Some recent complaints [have] involve[d] criminals posing as technical support representatives for […] virtual currency exchangers,” with individual victim losses often in the thousands of dollars.”

The FBI states that “Criminals pose as virtual currency support,” luring “Victims to contact fraudulent virtual currency support numbers usually located via open source searches. The fraudulent support asks for access to the victim’s virtual currency wallet and transfers the victim’s virtual currency to another wallet for temporary holding during maintenance. The virtual currency is never returned to the victim, and the criminal ceases all communication.”

In other instances, criminals conducting tech support fraud “who have access to a victim’s electronic device use the victim’s personal information and credit card to purchase and transfer virtual currency to an account controlled by the criminal.”

FBI Pressures Social Media Networks to Ban Cryptocurrency Ads

FBI Warns of Crypto Scammers Posing as Exchange Support StaffThe FBI appears to be taking increasing action in the cryptocurrency sphere, with reports indicating that the institution has been actively working to persuade leading social media platforms to crackdown on the advertising of cryptocurrencies and ICOs.

Last month, a senior investigator at the Manitoba Securities Commission and the chairman of Canada’s Binary Options Task Force, Jason Roy, revealed that Canadian and U.S. authorities had been pressuring Facebook to enact a prohibitive policy with regards to cryptocurrency advertising.

Mr. Roy stated “What happened is that Canada’s Binary Options Task Force, as well as the FBI, explained to Facebook what the concerns were and that these types of ads are leading to people becoming victims. We’ve been talking to Google and had similar discussions and are waiting for them to take similar action.”

Have you ever fallen victim to a tech support scam? Share your experience in the comments section below!


Images courtesy of Shutterstock


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Huobi Officially Launches in South Korea with 100 Cryptocurrencies

Huobi Officially Launches in South Korea with 100 Cryptocurrencies

Huobi has officially launched in South Korea. The platform facilitates the trading of 100 cryptocurrencies and 208 markets. The exchange is also creating an investor protection fund and program to immediately compensate for any losses that are not investor error.

Also read: Japan’s DMM Bitcoin Exchange Opens for Business With 7 Cryptocurrencies

Huobi Korea Launched

Huobi Korea, a subsidiary of the Beijing-based crypto trading service provider Huobi, announced that it has officially launched on March 30.

Huobi Officially Launches in South Korea with 100 Cryptocurrencies

“Huobi Korea will list 100 coins and 208 markets (33 USDT markets, 98 BTC markets, 77 ETH markets),” Zdnet detailed. The exchange stated that it stores 98% of its customer assets in cold wallets. Furthermore, the exchange’s internal access procedure has been strengthened, according to the publication. “In order to open the repository, we have added security to complex procedures that require multiple people to authenticate together,” the news outlet conveyed, and quoted an official of the exchange explaining:

We are also creating an investor protection fund and run an investor protection program to immediately compensate for losses that are not investor error.

100 Cryptos

Huobi confirmed on Thursday that “In Huobi Korea, 100 coins can be traded,” noting that the exchange “will try to support more and more coins trading.”

Huobi Officially Launches in South Korea with 100 CryptocurrenciesThe supported cryptocurrencies, according to Huobi, include DAT, DBC, DGD, DTA, EDU, ABT, ACT, ADX, AIDOC, APPC, AST, BAT, BCD, BCH, BCX, BIFI, BLZ, BTC, BTG, BTM, CHAT, CMT, CTXC, CVC, LINK, LSK, LTC, LUN, MANA, MCO, MDS, ICC, IOST, ITC, ICC, IOST, ITO, EKO, ELA, ELF, ENG, EOS, ETC, ETH, EVX, GAS, GNT, GNX, MTP, MTL, MTN, MTX, NAS, NEO, OCN, OMG, ONT, OST, PAY, POWR, PROPY, QASH, QSP, QTUM, QUN, RCN, RDN, REQ, RPX, RUFF, SALT, SBTC, SMT, SNC, SNT, SOC, SRN, STK, STORJ, SWFTC, THETA, TNB, TNT, TOPC, TRX, USDT, UTK, VEN, WAX, WICC, WPR, XEM, XRP, YEE, ZEC, ZIL, ZLA, and ZRX.

Korean Won Support Coming Soon

Huobi Officially Launches in South Korea with 100 CryptocurrenciesAs for the Korean won trading, Huobi Korea wrote, “the KRW market is in the process of being prepared and will be available soon.”

The lack of won trading is likely due to the South Korean regulation which enforced the real-name system at the end of January. Since its implementation, Korean banks have only been issuing virtual accounts to the country’s largest four exchanges – Upbit, Bithumb, Coinone, and Korbit. However, Money Today reported on Thursday that a major bank in Korea, Shinhan Bank, is in talks to start issuing virtual accounts to a smaller crypto exchange, Coinplug.

The official from Huobi Korea was quoted by Zdnet saying:

We are concentrating our ability to prepare for the rapid opening of the Korean won market…All employees will work hard to provide safer and more stable trading services.

Huobi’s Global Expansion

Huobi is currently the third largest crypto exchange globally with a 24-hour trading volume of $1.32 billion at the time of this writing. South Korea’s largest exchange is the Kakao-backed Upbit with a trading volume of $745 million during the same time period.

Before China closed down cryptocurrency exchanges, Huobi was among the largest in the country. Today, the company has a presence in six countries – Korea, Singapore, USA, Japan, Hong Kong and China.

Last week, Huobi registered with the U.S. Financial Crimes Enforcement Network in preparation for its U.S. launch. Meanwhile, Japan’s SBI Group has stopped the capital and business tie-up with Huobi Group.

What do you think of Huobi’s launch in South Korea? Let us know in the comments section below.


Images courtesy of Shutterstock and Huobi Korea.


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Friday, March 30, 2018

Gazprombank to Try Crypto Deals in Switzerland

Gazprombank to Try Crypto Deals in Switzerland

Gazprombank, one of Russia’s largest financial institutions, is planning to perform some cryptocurrency deals by the end of the year. According to one of its top managers, the bank is responding to demand from “substantial clients”. The pilot transactions will be conducted through its subsidiary in Switzerland.

Also read: New Bill Aims to Allow Crypto Payments in Russia

Working on Procedures, Looking into Options

The state-owned Gazprombank may try to conduct some cryptocurrency transactions on behalf of its customers as early as this year, Russian media reported. They will be channeled through its Swiss-based subsidiary, Deputy CEO Alexander Sobol told Interfax news agency.

Gazprombank to Try Crypto Deals in Switzerland“These will be pilot deals, not on a large scale. Some substantial private clients have asked for this kind of services,” Sobol explained. The bank is currently looking into different options to meet that demand. Gazprom’s subsidiary in Switzerland is studying the opportunities there. The alpine country has implemented more liberal regulations, he noted.

According to the high-ranking representative, the Russian bank has not yet developed crypto-related procedures. No decision has been taken to offer the new services to regular customers. However, Alexander Sobol stressed that the bank’s management is actively following [crypto] developments.

Gazprombank is the third-largest bank in the Russian Federation. It offers retail, corporate, investment and depositary services, as well as clearing and settlement products. It also deals with securities and forex instruments. Gazprombank owns shares in three other Russian banks and is operating in Belarus and Switzerland through subsidiaries.

Breaching AML Rules in Switzerland

About a month ago the Swiss Financial Market Supervisory Authority (FINMA) banned Gazprombank (Switzerland) from attracting new private customers. The regulator found deficiencies in its anti-money laundering procedures. The agency inspected more than 30 banks within an investigation which began in 2016 after the Panama Papers revelations. FINMA said that the bank had breached its own AML requirements between 2006 and 2016.

The Swiss subsidiary was founded as Russische Kommerzial Bank AG in 1992. It was renamed after its acquisition by Gazprombank in 2009. The bank specializes in financial operations related to the bilateral trade between Russia and Switzerland. It also provides services to Swiss companies investing in the Russian Federation and the CIS countries.

Gazprombank to Try Crypto Deals in Switzerland

Cryptocurrency deals are not yet regulated in the Russian Federation. However, two draft laws aimed to change the status quo have been introduced in the State Duma this month. The bill  “On Digital Financial Assets” is going to legalize blockchain technologies, mining operations and initial coin offerings. The other draft is supposed to amend Russia’s Civil Code in order to regulate the use of “digital money” and protect the investors. The bills should be adopted in June or July.

Earlier in March, a working group proposed tax exemptions on profits from crypto-related transactions after a meeting at the Ministry of Economic Development in Moscow. It gathered representatives of several government institutions and the private sector. Gazprombank also took part in the consultations.

Do you expect more Russian banks to enter the crypto sector after its legalization? Share your thoughts in the comments section below.


Images courtesy of Shutterstock.


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