South Korea Imposes $69M Tax Obligation on Crypto Exchange Bithumb

The National Tax Service of South Korea (NTS) has decided to withhold income tax from Bithumb’s foreign customers. The total tax to be imposed on their transactions amounts to more than 80 billion won (over $69 million), the leading Korean cryptocurrency exchange announced.

Also read: Poles Hit With Backdated Tax on Crypto Trades

Bithumb to Challenge the Move Which Lacks Legal Grounds

In what has been described by Korean media as the first such attempt by the government in Seoul, the NTS is preparing to withhold the tax even before the country’s legislation has been amended to allow for the taxation of cryptocurrencies. The new provisions are expected to be adopted next year. Quoted by the Korea Joongang Daily, a notice published Friday through the Financial Supervisory Service’s system by Bithumb’s largest shareholder, Vident, detailed:

We confirmed that the NTS will impose 80.3 billion won of withholding tax on our foreign clients.

No specific taxation standards for crypto assets are in place at the moment, the outlet noted in its report. The Ministry of Strategy and Finance announced earlier this month that the 2020 tax law reform will introduce taxation for incomes and profits from cryptocurrency transactions. Industry sources say the Bithumb case is just the first step which reveals that the government will make good on its intentions.

Bithumb’s foreign clients have become the first to be targeted. But it’s actually the exchange that’s supposed to withhold and deposit the tax to the treasury. However, Bithumb is planning to take legal action against the tax claim, Vident clarified in its announcement. That means the payment may eventually be different from the stated amount.

NTS Building in Sejong City

Speaking to the newspaper, Professor Kim Woo-cheol from the University of Seoul remarked that when there’s income, there’s tax as well. He added, however, that the current situation can be described as a “tax bomb” for the digital asset trading platform. “Bithumb can pay 80.3 billion won and afterward collect the amount from its foreign clients, but practically that’s impossible,” the academic elaborated.

Crypto Profits Categorized as Miscellaneous Income

According to other tax experts quoted by the publication, the NTS has based its figure on the amounts withdrawn by foreign users from Bithumb accounts. Their earnings from trading on the exchange have been categorized as ‘miscellaneous income,’ which is subject to a tax rate of 22%. In this case, withdrawals from the platform have been estimated by the government at over 401 billion won, or around $347 million.

Miscellaneous income is one of the possible interpretations of revenues generated in cryptocurrency trading, with the other one being capital gains such as those from the sale of real estate or stock. The chosen category refers to irregular income and tax is collected once a year, while the capital gains tax should be reported paid for each deal. Such a scenario would’ve meant that Korean exchanges would have been required to report every trading record which is impractical and complicates oversight.

Besides this questionable approach, other issues stand in the way of taxation too. Before December 2017, foreigners were free to trade on Korean exchanges but many transactions were conducted under fake names or by anonymous traders, including local residents. Establishing who’s behind a certain trade and the size of their profits would be extremely difficult for trading platforms, if at all possible.

A legal challenge against the tax agency’s decision is very likely to succeed also because the move is not based on any law. Under the current Korean legislation, the state cannot impose taxes on incomes that are no specifically defined in the country’s tax code. Besides, a question that still hangs in the air is whether Seoul views decentralized cryptos as currencies or some kind of assets.

What do you think about South Korea’s decision to withhold tax from Bithumb’s foreign customers? Share your opinion on the subject in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any third party products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 this article.

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Ethereum Proponent Virgil Griffith Deemed a Flight Risk, Judge Denies Bail

U.S. law enforcement filed in November criminal charges against Ethereum researcher Virgil Griffith because he traveled to North Korea and taught “his audience how to use blockchain technology.” Griffith was arrested on Thanksgiving Day and has been forced to remain in prison the whole time. On Dec. 26, SDNY Magistrate Judge Barbara Moses refused Griffith’s bail plea citing that he might be a flight risk.

Also Read: Harsh Laws Make Bitcoin Holders Consider Renunciation or Dual Citizenship

US Prosecutors: ‘Griffith Could Acquire Property Overseas With His Digital Wallet’

A few weeks ago the cryptocurrency community learned about the Ethereum proponent Virgil Griffith’s travels to North Korea (DPRK). Criminal charges are being sought against him which was initiated by the United States Attorney’s Office for the Southern District of New York (SDNY) and the FBI. According to U.S. law enforcement agencies, Griffith was told not to go to North Korea but then decided to “[teach] his audience how to use blockchain technology to evade sanctions.” The 36-year old Griffith faces 21 months in prison if convicted and he’s been in jail since he was arrested on Nov. 28. Now according to innercitypress.com, Griffith was denied bail on Thursday because Judge Moses thinks he may abscond.

Ethereum community member Virgil Griffith.

Innercitypress.com columnist Matthew Russell Lee said that Judge Moses asked prosecutors if they believed “North Korea will send a private plane to pick him up.” U.S. prosecutors claim Griffith “misled pre-trial services” in regard to his second residence in Puerto Rico. The court asked Griffith’s council why he had another home in Puerto Rico and his lawyer told the judge: “Puerto Rico is a developing area in the crypto space.” Russell Lee’s report also notes that Griffith’s lawyer insisted to the court that using cryptocurrency is not illegal. Griffith’s legal team also had to disclose that he had roughly $65,000 in an “old fashioned savings account.” According to Griffith’s lawyer, he has plans to go home to his parents in Alabama if granted bail. The prosecutors disagreed and stated:

[Griffith] has not given sufficient financial info. He may have misled pre-trial services: he owns the property and a shell company in Puerto Rico. Griffith told his parents he might set up a money-laundering company in North Korea. He can acquire property overseas with his digital wallet.

Ethereum Community Debates Griffith’s Criminal Charges

After hearing from both sides, Judge Moses said: “There are no conditions to assure the defendant’s presence — Bail is denied.” The SDNY magistrate also stressed that Griffith has a month to provide transparency into his accounts. She also noted that she was “troubled by the delay in disclosing the Puerto Rico residence.” According to the court transcription, U.S. prosecutors claimed Griffith discussed renouncing his citizenship with his parents via text messages.

A number of crypto supporters stood up for Griffith’s cause when he was arrested and influencers like John McAfee called the U.S. government “corrupt at the core.” On Dec. 1, Ethereum inventor Vitalik Buterin spoke out against Griffith’s arrest and said he signed a petition to have him set free. “I refuse to take the convenient path of throwing Virgil under the bus, because I firmly believe that that would be wrong.”

Change.org’s petition for Griffith’s freedom

However, not everyone agrees with Buterin and a few people believe that Griffith should not have broken the law. Well known Ethereum developer, Lefteris Karapetsas tweeted: “Becoming devil’s advocate and to answer the blog’s question as to the reason he is in jail would probably be because by traveling to North Korea as an American citizen he knowingly broke the law and went against sanctions.” “Honestly Vitalik, it doesn’t matter how good of a person Virgil is, or how honorable his intentions were,” another person responded to Buterin’s statements. “He made an incredibly stupid decision and went directly against the U.S. [government]. I very much disagree with your support of him,” he added.

At the moment, the petition for Griffith’s freedom has only 284 signatures and the goal is currently set for 500 signatures. It was initiated by cryptocurrency proponent Joseph Delong and he says he’s also contacted the Electronic Frontier Foundation (EFF) and the American Civil Liberties Union (ACLU).

What do you think about the U.S. government’s charges against Virgil Griffith? Let us know what you think about this subject in the comments section below.

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Wazirx CEO on 2020 Outlook, RBI Ban, Crypto Regulation for India

The Indian crypto community has had an eventful year, with a bill on the horizon, the RBI ban’s supreme court hearing, and the community’s efforts toward positive crypto regulation. News.Bitcoin.com interviewed Nischal Shetty, CEO of local crypto exchange Wazirx, about what the Indian crypto industry could expect in the year 2020 and a wide range of other crypto topics.

Also read: Regulatory Roundup – New US Crypto Bill, France’s 1st Approved ICO, Muslim Crypto

News.Bitcoin.com (BC): How did you first get involved in crypto? What attracted you to the industry?

Nischal Shetty (NS): I’ve been on and off learning/understanding crypto since 2009. But I got deep into it only in 2017. The “permissionless” aspect of crypto is what attracted me to this industry. Imagine being able to build what you want without needing to rely on any other person or company. This aspect of crypto will lead to innovations in finance and tech that has never been possible in traditional financial systems.

Nischal Shetty, Wazirx’s CEO.

BC: How will crypto benefit India?

NS: There are millions of ways in which crypto will immensely benefit India. To keep my answer short, the three prominent benefits would be:

1. Employment and entrepreneurship:
Hundreds of crypto startups will emerge the moment the Indian government takes a positive step forward in crypto. This will, in turn, lead to thousands of new jobs in the country.

2. Access to cheaper capital:
The interest rates in India are higher than in most other countries. Crypto has the power to provide access to cheaper capital in India.

3. Banking the unbanked:
There are over 300 million unbanked in India. Traditional banking requires physical infrastructure thus making it difficult and expensive to reach all parts of India.

Crypto can penetrate faster and involve such unbanked people in the online financial ecosystem.

BC: How would Facebook’s Libra benefit India? Is India likely to allow Libra in the country?

NS: India has tons of freelancers working for clients across the world. Libra can help them accept payment from anyone anywhere in the world for the work they’ve done.

Libra can provide financial inclusion to those in India who do not have access to traditional banking.

It’s going to be an uphill task for Facebook to get Libra accepted in India. But I really hope the Indian government looks at the merits of such initiatives and allows it.

BC: What do you think of the RBI introducing a digital currency? Do you think a central bank digital currency would benefit India?

Yeah, it would definitely benefit India and Indians. I’m more excited about the fact that a CBDC [central bank digital currency] could open the gates for innovation with developers not only in India but around the world building wallets and other products for such a currency. This would mean more choices for the Indian consumer.

BC: Do you think the Supreme Court will lift the RBI ban? If so, when do you think that will happen?

I really hope they do. I think we’ll see some solid progress with the case in 2020 as the matter has reached a stage where it’s being heard in court.

BC: Why do you think the government has not introduced a crypto bill yet? Do you think the government will still go ahead with the draft bill to ban crypto?

NS: The Indian government will not rush into a bill without understanding the technology and discussing it with the crypto industry. This is the major reason why the proposed draft bill has not been considered.

We’re confident that our leaders will engage with the crypto industry of India and then progress in the right direction.

BC: Do you think the government will eventually introduce positive crypto regulation? If so, when do you think that will happen?

NS: I absolutely think they will introduce positive crypto regulations. It might happen in 2021/2022 depending on the pace of regulations in other countries, especially U.S. India will wait and watch other progressive nations before making any regulatory moves in crypto.

India’s finance minister whom the crypto draft bill was submitted to in February.

BC: What are the most important things the Indian government should realize about crypto?

NS:

1. Crypto is one of the most innovative technologies of this decade.

2. India should get in ASAP so that we build the much-needed expertise in crypto.
3. India will see a boost in jobs if we promote crypto technology.
4. India can attract billions of dollars worth of investment if it opens up to crypto.
5. Indian startups can get access to a larger capital pool if India brings about favorable ICO regulations.

BC: Looking ahead, what should the crypto industry in India expect in the year 2020?

NS: 1. Crypto exchanges in India will see even greater competition as exchanges around the world start competing for the Indian audience. India is a sleeping giant in the crypto space and everyone wants to capture a piece of this market early.

2. We’ll see lawmakers taking positive steps towards understanding crypto and involve the industry to formulate the right set of crypto regulations.

3. Defi will take off in a big way in India.
4. A lot more Indian developers will take interest in building for the decentralized internet.
5. At least one crypto company will hit $10M+ in revenue encouraging more startups in this space.

BC: What are the latest developments for Wazirx after the Binance acquisition? What has changed/improved?

NS: Wazirx has gotten international exposure now thanks to Binance. The Wazirx brand has become way more popular globally than it was before.

We’re in the process of a deep P2P integration into Binance that will allow Indians to easily buy/sell crypto with INR right within Binance.

Binance believes in providing complete independence to the teams within the company. That has been true for Wazirx where we still operate as an independent entity. However, we’ve gotten access to so much talent that exists within Binance that our execution speed has increased immensely. If we hit any roadblocks, there’s always someone within Binance who knows how to help out.

Expect a lot more speed and new stuff faster from Wazirx now that we’ve been acquired by Binance. We want to grow the crypto ecosystem in India and we’re confident we’ll be able to do that with help from Binance.

BC: How is the “India Wants Crypto” campaign going?

NS: It’s going really well. Every day more and more people in India and around the world get to know about this campaign. The campaign has been able to spread the right information about crypto throughout India.

I’ll continue to run the campaign as it has gone above the initial objective of being heard by lawmakers to now being a symbol of hope for crypto in India.

We need to keep spreading this awareness and I’m sure a time will come when we’ll be heard by our lawmakers as well.

Do you agree with Shetty? Do you think the supreme court will lift the RBI ban at the next hearing in January? Do you think the Indian government will introduce positive regulation for the crypto industry in 2020? Let us know in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 this article.

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RUON.AI Announces Patents and Successful Upload Of SovereignSky Space Blockchain

This is a paid press release, which contains forward looking statements, and should be treated as advertising or promotional material. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the press release.

LONDON, Dec, 2019 – Within just a decade, mankind will be well on the way to ending extreme world poverty. A new, encrypted Wi-Fi network will connect people on Earth. And a near indestructible blockchain financial system and global currency will exist off-world, invulnerable to the effects of war, conflict, solar flares, meteor impact, global catastrophe, cyclones, banking and market collapse and other catastrophic events.

This might sound like the premise for a sci-fi novel – and you would be right; it is!

The very concept came from SovereignSky/RUON AI Founder Timothy E. Burke’s sci-fi space opera “Planet X,” but what started as a movie premise on a hypervelocity star system far away, is now becoming a reality here on Earth and our own solar system.

SovereignSky, the company responsible for the world’s first spaced-based blockchain, has successfully started to upload its BEOS hybrid blockchain to its primary satellite constellation currently in space orbit through a partnership with SpaceQuest – launched in December 2018 onboard Elon Musk’s Space X – to enable a “One World, One Network.”

“The project is so all-encompassing, it has taken some of the smartest, most visionary minds in blockchain, aerospace, mobile technology, and even science fiction to achieve its grand vision,” says Stan Larimer – co-founder of RUON AI, BEOS, SovereignSky, Steemit, and Bitshares.

The idea is to create a global Wi-Fi network and establish a space-based digital “Free World Currency” to help redistribute the world’s wealth to the less fortunate and help support the one billion children worldwide who live in poverty.

SovereignSky is the world’s first satellite constellation powering its own space-based blockchain. This blockchain is currently being uploaded three times daily by SpaceQuest onto SovereignSky’s first satellites called AprizeSat-5 and THEA.

“We are excited to work with SovereignSky on its incredible mission to help eradicate global poverty, and we are on the way to complete one of the first ever blockchain transactions in space onboard the SovereignSky satellite network,” says Dino Lorenzini, CEO of SpaceQuest.

SovereignSky is co-founded by “Godfather of Bitshares” Stan Larimer (father of Dan Larimer, the creator of EOS) and film producer and science fiction writer/co-director Timothy E. Burke (executive producer on Lionsgate’s 2019 summer thriller with Jessica Alba and Gary Oldman). The company’s strategic partners include SpaceQuest, Spacebridge.io, Missionspace.one, Layr, StealthGrid, Rune Wallet, Zapple, VitalCard and BEOS.

RUON Equity Partnership Offer to Top Global Celebrities
RUON AI has an equity offer out to the top 30 celebrities on social media wanting to join its social network exclusively to kickstart the global charity project and skyrocket the company valuation.

RUON AI (pronounced “Are-you-on”) today also announces major IEO plans and the filing of a 501-page intellectual property IP patent application covering social intelligence, spaced based blockchains and future-life AI technologies.This is all part of its “One World, One Network” mission to enhance communication and connections with new and old contacts, as well as to help end poverty and protect people and wildlife.

RUON AI & SovereignSky – How it Works

One single patent application alone allows the RUON AI solution to scan news sites, blogs, forums, chat rooms and social channels to identify users endangered or affected by war, famine or oncoming natural disasters. The AI creates a database of endangered users and sends their profiles to HNWs, companies, donors and members of the public who can instantly send electronic currency donations (via SovereignAid & RUON electronic currency) directly to the users before the danger strikes. This single AI IP patent application alone has the capacity to help avert disasters and potentially help save hundreds of thousands of lives. RUON AI is the chat app of the future.

The Revolution Begins.
Watch the RUON AI Revolution Video here:

SovereignSky and RUON AI’s next task is to work with global charities, international agencies, UHNW, VCs, the UN and Fortune 500 companies to distribute SovereignSky’s “connectivity boxes” containing small portable modems, smartphones preloaded with the RUON AI app, and smartcards connected to digital wallets within the RUON AI app, which is powered by Rune’s chain-agnostic technology. Timothy Burke has already met with the Missionaries of Charity in Florida, one of the best global charitable distribution networks.

Tim Burke, RUON AI founder, says, “The beneficiaries receive donations instantly and can upload photos and videos showing your money being put to good effect. People in need can personally thank donors through the RUON app, and donors can monitor exactly how their donations have been spent. All of this is made possible via blockchain technology, auditing and reporting. We feel it’s one of the most effective and trusted donation and verification processes ever created, and, today, this solution has been officially captured in one of RUON’s patent pending claims. It’s time for change. Please contact us and help support our mission.”

SovereignAid and RUON electronic currency will then be beamed from donors up to the satellite constellation and directly to places and people in need in economically developing nations and areas without banking or even wi-fi (connecting directing to the portable modems distributed in these areas). The satellites connect to the modems, each modem connects to the phone and the phone’s multi-blockchain wallet connects to the smart card, which can be used at any terminal accepting Visa.

One of the most transparent, fastest and efficient donation processes ever created.
For the first time, donors can choose exactly who their donation will be delivered to and know that up to 97.5% will be received directly by the village, orphanage, hospital or person in need. The beneficiary and donor can even show and track how the donation is spent through videos, pictures, two-way chat and even double-verification blockchain accounting technology, providing one of the most effective and transparent donation processes ever created.

Any user holding a SovereignSky or RUON smartphone will automatically be able to receive a donation to their RUON wallet and can instantly spend the donation on clothes, water, food and medicine using the smart card.

“The Rune Wallet team is pleased to be the exclusive BIP47 and Open Transactions based wallet and cryptoserver technology provider to RUON AI/SovereignSky. Our integration will enable RUON users to easily and very securely transact and store any cryptocurrency in real-time, while providing total financial autonomy to the users,” says Rune Wallet President Mehow Pospieszalski.

SovereignSky’s whitepaper incorporates the World Bank’s estimate that nearly half of the world’s population — more than 3 billion people — live on less than $2.50 per day, and only $130 billion is needed per year to eradicate extreme global poverty. More than 1.3 billion live in extreme poverty — on less than $1.25 per day, and one billion children worldwide are living in poverty. According to UNICEF, 22,000 children die every day due to poverty. Globally, $800 billion is donated each year, with the United States alone donating a generous $390 billion to charity. These numbers show just how achievable eradicating extreme world poverty actually is. The project is also on target to help support the UN’s Sustainable Development Goals by 2030.

“The RUON AI vision is empowering and opens up new opportunities and economies through an incentivized, transformative, social, and secure platform,” says Larry Castro, CEO of Quantum Generation Ltd.

SovereignSky and RUON AI are now planning to offer contribution in the “One World, One Network” project, patents, app and space-based technology to traders and investors across the crypto community by launching an “Initial Exchange Offering (IEO)” on major crypto exchanges. The opportunity is not open for U.S. investors at this time; however, the company will have its gold-pegged, STO token available soon for accredited investors.

-ENDS-

FOUNDER INTERVIEWS ARE AVAILABLE UPON REQUEST

About RUON AI (https://www.RUON.ai)

RUON AI is a highly sophisticated, next-generation artificial intelligence (AI) social media, chat, and blockchain banking application with its own electronic currency, smart card and multi-blockchain digital wallets. On downloading the app you’ll receive your very own RUON bank account along with routing number, sort code and smartcard sent out in the post. The app has been expertly designed to instantly make you money when posting content and enhance your connection with all your old friends and new contacts. For the first time, you’ll be able to automatically earn RUON coins from all your family, friends and followers when you post content. The app is being built to feature the key capabilities of Instagram, WhatsApp and Snapchat and integrated into Amazon and Alibaba drop-shipping for easy adaptation of cryptocurrency and blockchain for the mass market.
Welcome to the Future. Welcome to RUON AI.

“POST. STREAM. EARN. SPEND. GIVE.”

About SovereignAid / SovereignCoin

SovereignAid and SovereignCoin will be two space-based electronic currencies to help redistribute the world’s wealth to the 2 billion unbanked and the more than 1.3 billion living in extreme poverty on less than $1.25 per day. SovereignAid will be used for humanitarian and charity donations with upto 97.5% of the donation going directly to the person in need. SovereignAid currency is sent and received within RUON AI’s digital wallets and is set to revolutionize large-scale charity giving from individuals, companies, family offices, HNWIs and Fortune 500 companies to charities, hospitals, orphanages, conservationists and people in need found within profiles on the RUON AI app. SovereignCoin will be a commercial currency used by big business, B2B and B2C customers.

About SovereignSky (https://ift.tt/2PAmesg)

SovereignSky, the world’s first space-based blockchain, designed to facilitate equal access to the world’s wealth to anyone on Earth regardless of their location, nationality or economic starting conditions. SovereignSky and its partners will combine one of the most scalable, fastest blockchains with a low earth orbit (LEO) satellite Wi-Fi constellation transcending jurisdictional and infrastructural limits. Its processing node locations in Earth’s orbit enable it to offer equal access and equal opportunities to participants from all over the planet and the first “Free World Currency” while incorporating open source and the concept of “Building block(chain)s for a better planet” introduced by PwC and the Stanford Woods Institute.

HELP US, HELP THE WORLD
For Brand Partnerships, Collaborations, Celebrity Endorsements, Equity Information, Token Economics and anyway you want to help please contact us below, using both emails. Thankyou.

SovereignSky/RUON AI Contacts:
contact@ruon.ai

Telegram: t.me/ruon_ai
Skype: ruon101

Websites:
https://www.RUON.ai
https://SovereignSky.com

Contact Email Address
Stan@SovereignSky.com

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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Coinbase Wallet Removing Mobile Dapp Browser to Comply With Apple

It’s been a busy couple of weeks for bad news in crypto, with Youtube’s removal of hundreds of videos, Google Play’s removal of Metamask, and now Coinbase mobile wallet users facing an announcement their app is losing its dapp browser, reportedly due to restrictive policy requirements from Apple. Some are calling the announcement “the last straw,” and even Coinbase leadership appears none too pleased.

Also Read: Google Bans Crypto App Metamask From Play Store

Defi Takes a Hit

The great Youtube Christmas purge. Google Play’s banning of Metamask. Recent events have proponents of decentralized finance and cryptocurrencies asking themselves just what exactly is going on. Now it appears Apple’s policy is next to come under fire from the crypto community, as the Coinbase mobile wallet on the App Store appears to be in the process of removing the built-in decentralized app (dapp) browser.

In a December 28 Reddit post, one user shared a screenshot supposedly from the iOS mobile app which read:

Coinbase CEO Brian Armstrong replied in the thread saying:

Coinbase CEO here. This is really unfortunate to see. Apple seems to be eliminating usage of Dapps from the App Store.

Armstrong went on to state, “If Apple customers want to be able to use Dapps, we may need to make this request know to Apple in some way. This is an important area of innovation in finance, and many developers and early adopters of this technology have millions of dollars worth of crypto tied up in these financial applications, which they will no longer be able to use on Apple mobile devices if this app store policy continues.”

Dapp-Related Information Missing

A comparison of the Google Play version of the Coinbase wallet and the App Store version reveals that there’s now almost no language mentioning dapps on the App Store version, while the name of the wallet on Google Play remains “Coinbase Wallet — Crypto Wallet & Dapp Browser.”

App Store screenshots.

Screenshots from the Google Play Version.

Capabilities for browsing dapps within the Apple version of the application already appear to be missing at press time, when news.Bitcoin.com opened the app for review.

Community Reactions

“This is the final straw for me and I will never be buying another apple product,” one Redditor proclaimed. Another answered: “Google is doing the same thing with metamask mobile. There is nowhere to go.” Some in the crypto space think big names should band together and push back against the perceived anti-defi moves of mega corporations and vested tech sector interests. Redditor decibels42 wrote:

Will the leading companies in this space (Coinbase, Gemini, Consensys, etc.) work together on this and fight back? Whether it’s anticompetitive law suits or in other ways, if the industry just rolls over and allows censorship of Web 3, or allows Apple/Google to make dapps/wallets extremely difficult to access (removing the dapps/wallets from their stores) and/or to be discussed (censoring crypto videos on YouTube), this tech will never get adopted by the masses.

The news that @Apple is removing DApp browsers like @CoinbaseWallet from the app store, while disappointing, shouldn't surprise anyone. Terms of service have been clear since the beginning and I'm mostly surprised it took this long.

Not saying it's a good decision, though! /1

— brandoniles (@brandoniles) December 28, 2019

Ampleforth co-founder Brandon Iles tweeted, “The news that @Apple is removing Dapp browsers like @Coinbasewallet from the app store, while disappointing, shouldn’t surprise anyone. Terms of service have been clear since the beginning and I’m mostly surprised it took this long. Not saying it’s a good decision, though!”

It’s clear that Apple’s crypto guidelines and the uncaged world of decentralized applications are foundationally incompatible. How the decentralized finance industry and individual crypto users react to these changes could say a lot about the trajectory of crypto use and innovation into 2020 and beyond.

What are your thoughts on the removal of dapp-related capabilities from App Store applications? Let us know in the comments section below.

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Image credits: Shutterstock, fair use.

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Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely.

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Central Bank Gold Hoarding Hits 50-Year High

While dozens of the world’s economic leaders participate in extreme monetary easing policy, central banks have also been hoarding gold. Central banks accumulated over 668 tons in gold purchases this year, which is more than 2018’s record numbers. In fact, the key drivers in gold demand this year stemmed from central bank purchases, most of which were bought (390 tons) during the first two quarters of 2019.

Also Read: Germans Rush to Buy Gold as Draft Bill Threatens to Restrict Purchases

Central Bank Gold Purchases in 2019 Surpass Last Year’s 50-Year Milestone

During the last few months of 2019, economists have been warning of worldwide economic calamity. Moreover, at least 37 developed central banks have participated in significant monetary easing practices like large scale overnight repos and slashing interest rates. Every time one of the banks cuts a nation’s interest rate or fuels the country’s private banks with stimulus, they cite a weak economy, lack of liquidity, and rising inflation. However, most people don’t know that while central planners are toying with the global economy, they’re also purchasing gold in mass quantity. Despite gold bug Peter Schiff’s recent opinion, BTC prices outshined gold gains this year. Still, gold had a very good year touching an all-time high at $1,542 per ounce and gained more than 10% this year. One of the biggest reasons for gold’s significant rise was due to central bank purchases.

In 2018, gold touched a 50-year record, as far as central bank demand for the precious metal is concerned. Data shows that 2019’s gold purchases are up 17 tons more than the 651.5 metric tons purchased the previous year. Some of the biggest central bank gold purchases this year came from places like Kazakhstan, Russia, and Turkey. A variety of newer gold buyers also appeared in 2019, surprising a few economists. For example, in February, the Reserve Bank of India increased buying by 40 tons and the country hadn’t increased in over a decade. Poland increased gold purchases as well, seeing a 25% rise year-over-year (YoY) with an increase of 25 tons. In 2019, Hungary bought more gold than it has in the last 30 years. A number of market observers have different opinions on why the world’s central banks are stockpiling gold reserves. Investment Analyst Sebastian Sienkiewicz believes it’s because gold is a reliable safe-haven asset.

“Central Banks’ gold purchases are on track to set a 50-year high,” Sienkiewicz tweeted. “Main Reasons? [It’s a] safe-haven asset, reserves/portfolio effective diversification, gold’s ability to improve risk-adjusted returns, [and it’s] valuable collateral.”

Gold is already becoming a growing portion of central banks’ reserves. While the dollar still predominates, official gold holdings are up, in part because of politics, as with Russia dumping dollars to protest U.S…. https://t.co/YiFibSeeFp

— peter lutrario (@peterlutrario2) December 29, 2019

Private and Domestic Demand for Gold Rises While Germany Drops Limit to Buy Gold Anonymously

Independent commodity and former Macquarie Group analyst, Matthew Turner, explained on December 2, in a private note to investors, that despite slowing numbers toward the end of the year, 2019’s gold demand was invoked by central banks. Turner noted that China and Russia reduced their purchases slightly, which did impact data to a degree. The analyst said that countries like Russia are trying to spur “domestic producers to export their gold.” Turner also noted an oddity when he explained that China skipped out on purchasing gold during the month of October.

“It is too soon to know whether October’s zero purchases marks another cessation of buying or is a temporary pause,” Turner wrote. “One explanation could be the high price, which might make the case for switching into gold harder to explain. But it’s worth remembering that the pace of buying in 1H 2019 was unprecedented, and current rates are still quite positive,” he added. Despite Russia trying to spur gold export sales, countries like Germany have created new regulations that stifle retail gold purchases. Regional reports disclose that “From January 1, 2020, the limit to buy gold anonymously drops from €10,000 down to €2,000. In 2017, the limit to purchase the precious metal anonymously in Germany was €15,000.”

The central banks of many countries along "The New Silk Roads" have been net buyers of gold in recent years.

— Eric Di Benedetto (@ericdibenedetto) December 29, 2019

The Manipulated Stock Market Is Partying Like It’s 1999

In addition to the central banks’ current gold hoarding, the U.S. and global stock markets have been in an extreme bubble. On December 26, market analyst, Holger Zschaepitz tweeted about Nasdaq hitting a new milestone. “Party like it’s 1999,” said Zschaepitz. “Nasdaq hits 9,000 for the first time in the year-end rally — Now up 36% [year-to-date].” Bitcoin commentator Gabor Gurbacs replied to Zschaepitz’s tweet and said: “This is the case for Bitcoin and gold in one chart.” Gurbacs added:

Central banks and other financial market occultists destroyed honest markets and valuations. Younger generations are deprived of the opportunity to participate at a reasonable price — Sandcastles can’t hold up forever.

Nasdaq composite index hits 9,000 for the first time in 2019. Some skeptics believe the stock market bubble is destined to burst.

Commoners are not privy to the reasons why central banks are hoarding gold, but a number of individuals think it might be because the current stock market rally will end badly, and soon. Last year, the World Gold Council (WGC) explained why the central bank gold purchasing continues to surpass the highest volume on record. The report highlights the biggest reasons why central banks stockpile gold is because of “gold’s role as a safe haven asset and an effective portfolio diversifier.”

If i look where the smart money went this year i see gold. Even central banks bought more than ever before (over 550 ton).
Central banks know what is coming.
Only thing with gold is that it is difficult to send it for payments. https://t.co/0aeec33eoV

— Electroneum Belgium. (@ElectroneumBel1) December 29, 2019

Interestingly WGC’s research also said: “[central banks] manage gold the same as other reserves, but it is often excluded from their portfolio optimisation.” This means while these financial giants hand out lower rates, negative rates, and encourage borrowing, they are betting on gold against all the risks they created. The shell game will soon be up and the general public may realize the central planners’ band-aids are severely depleted.

What do you think about the central bank gold hoarding hitting a 50-year high in 2019? Let us know what you think about this subject in the comments section below.

Disclaimer: This article is for informational purposes only. It is not an offer or solicitation of an offer to buy or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is 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 ideas, concepts, content, goods or services mentioned in this article.

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Image credits: Shutterstock, Pixabay, Twitter, Bloomberg Intelligence, Fair Use, Wiki Commons, Holger Zschaepitz, and the World Gold Council.

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French Businessman Detained for Stealing €1.2 Million in Crypto From His Partners

An investigation launched on the request of a French startup has led to the indictment of a 37-year-old entrepreneur accused of stealing 182 BTC from the company he cofounded. Embezzlement of money is one the charges brought against him by the public prosecutor’s office in Paris.

Also read: Russia’s Supreme Court Recognizes Tokens as Assets Like Money and Property

Another Case Affirms the Money Status of Cryptocurrencies

Most European governments are yet to legalize and regulate cryptocurrencies. The process is starting to take shape and form with the implementation of the FATF standards and the transposition of EU’s Fifth Anti-Money Laundering Directive (AMLD5) into national legislations. Laws that go beyond pure AML rules are also likely to be adopted and some crypto-friendly jurisdictions have already done that.

In the meantime, real life events are forcing authorities to deal with the phenomenon and acknowledge some of its basic characteristics. ‘Moneyness’ is one of the features of decentralized digital currencies that institutions are generally unwilling to recognize. But when coins are subject to a crime, that suddenly changes for some reason, as a recent ruling by Russia’s Supreme Court showed.

In a similar context, a case in France now provides another confirmation that cryptocurrencies can be viewed as money even without specific regulations stating so. A businessman involved in the case has been accused of funds embezzlement and money laundering along with unauthorized entry into an automated data processing system and criminal manipulation of the data.

Entrepreneur Snatches 182 Bitcoins From His Former Company

The investigation was launched on a request from the digital technologies startup, which he helped launch in 2013. It was a pretty successful endeavor for the electronics specialist until a conflict broke out over differences regarding the development strategy. He was eventually fired from his position at the company and decided to leave the country in search for better opportunities.

The man’s former partners allege that acting from abroad he managed to steal 182 BTC, or around €1.2 million at the time of writing. According to the Le Parisien newspaper, which covered the story, that’s the third-largest crypto theft in the history of France so far. The misappropriation of funds took place between December 2018 and January this year, Russian media reported.

According to the publication, the tech expert knew the company’s electronic system very well and was able to penetrate it without being detected. He also withdrew the money in multiple transactions making sure each one was smaller than the limit that would automatically trigger a security alert. It took the cybercrime unit of the Paris prosecutor’s office several months to identify the wallet the cryptocurrency was transferred to and link it to the suspect.

The man was detained on Dec. 22 in the French department of Calvados upon his return to the country. Despite the prosecutors’ request for a permanent arrest, the accused has been released by court authorities and placed only under “strict judicial supervision.”

Do you think cases like this indicate that authorities recognize the money status of cryptocurrencies? Share your thoughts on the subject in the comments section below.

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Images courtesy of Shutterstock.

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via Lubomir Tassev

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