By Harold Vandelay on Feb 04, 2019 07:16 pm
A Right to Information (RTI) report has revealed that the Indian government is seeking outside legal help in order to finalize its long-awaited cryptocurrency regulations. The Indian government is still under pressure over the cryptocurrency debate. As time moves on, it is becoming hard to see how the government will be able to hold back the inevitable tidal wave of some 2.5 million Bitcoin users with its current, rather tired, stance on liberalizing cryptocurrency use among the nation’s 1.3 billion population. Following regular meetings of a government committee formed to examine what shape or form new legislation might take, it is expected that a comprehensive report will be submitted to the Ministry of Finance later this month. A law firm has also been engaged for their input by request of Secretary of Economic Affairs, Subhash Chandra Garg. The firm Nishith Desai Associates has now presented a proposal which will form part of the government’s final decision on cryptocurrency regulation. Some details from the submitted suggestions from Nishith Desai have been published which indicate that self-regulation ahead of an outright ban is recommended, as stunting the growth of cryptocurrency use in India would not be a positive step for the nation. As the paper states: “History has taught us that such technologies (blockchain) should be regulated and not banned since banning is likely to be counter-productive and may also suffer from legal infirmities.” The paper went on to explain the different ways of licensing cryptocurrency-based businesses by categorizing assets into discretely separate elements, stating: “For the purpose of legal analysis, all crypto assets are not alike… Broadly, crypto assets can be considered to be of three types- payment tokens, security tokens, and utility tokens.” The industry in India now awaits the outcome of the government’s next — hopefully, more decisive — decision, on how to regulate the space later this month, as originally indicated by The New Indian Express. Follow BitcoinNews.com on Twitter: @bitcoinnewscom Telegram Alerts from BitcoinNews.com: https://t.me/bconews Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here. Image Courtesy: Pixabay The post India Seeks External Advice on Crypto Regulation appeared first on BitcoinNews.com.
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By Manuel on Feb 04, 2019 03:59 pm
A report by Quartz India suggests that the Indian government is concerned about the effect cryptocurrency may have on its national currency. According to the article, a high-level panel working on a cryptocurrency regulatory framework has observed that a less-explored area for crypto use does exist and possesses as much risk as with the already established concerns of money laundering and terror financing. The committee, led by the economic affairs secretary in the ministry of finance Subhas Chandra Garg, has expressed concerns about the impact of cryptocurrency on Indian rupee in the long term should it become a recognized medium of exchange. “If Bitcoin and other digital currencies are going to be allowed to be used for payments then whether it will end up destabilizing the fiat currency is a major concern for them [the Garg panel],” the post reads, citing an anonymous crypto enthusiast who met with the ministers. The article has cited another report compiled by the Bank for International Settlements (BIS) — of which the Indian central bank is a member — as being the basis for the fears which are further amplified by the uncertainties cryptocurrency may have on the financial ecosystem as a whole as current frameworks are void of an encompassing metric system to account for such scaling effects. More so, the BIS may also be worried that central bank issued digital currencies may also contribute to the instability of the financial system as well. Perhaps these may be legitimate concerns, as cryptocurrency has so far demonstrated scaling features that could put legacy systems out of commission, and hence affect traditional banks that are unwilling to upgrade. Some forward-thinking financial institutions have begun exploring how to use the blockchain for interbank relations and are considering a digital currency to that effect. While the banks involved in the transition to blockchain-based systems have stated that the digital currency will be for cross-border payments and would only involve bank-to-bank transactions, the BIS had warned last year that digital coins might destabilize traditional lenders if offered widely to the general public. The legality of cryptocurrency in India remains flimsy since the committee involved with drafting a regulatory framework have given mixed signals on their stance with digital currencies. At one time, they recommended a ban on cryptocurrency, and later on, warmed up to the idea that “cryptocurrency cannot be dismissed as completely illegal”. With plans to develop its own state-backed cryptocurrency currently on hold, the threats may have indeed been real to the nation. Rahul Raj, founder of Koinex, has opined that such worries are premature, as nothing of the sort could happen in the near term given that cryptocurrencies are only being used in a very small circle for purchases. But it was further suggested that the concerns can only become of effect if blockchain has scaled to the level of Mastercard and Visa. Bitcoin News published early today a report on a sample poll survey revealing that in the US, only 3% of people used Bitcoin to make purchases in the past month. This goes further to prove Raj’s point and while the hype about cryptocurrencies is mainly bolstered by the speculative value, the utility aspect of most blockchain products are still a while off from full-scale adoption. Follow BitcoinNews.com on Twitter: @BitcoinNewsCom Telegram Alerts from BitcoinNews.com: https://t.me/bconews Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here. Image Courtesy: Pixabay The post India Worried Crypto Could Destabilize Rupee appeared first on BitcoinNews.com.
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By Harold Vandelay on Feb 04, 2019 12:43 pm
Eric Larchevêque, CEO of French hardware wallet manufacturer Ledger, has said that he is optimistic for the future of the cryptocurrency industry, as he prepares for “a whole new generation of consumers”. However, Larchevêque claims that education is still an area of concern when it comes to storage of cryptocurrencies, and many users fall short of protecting their funds adequately. Referring to the Cryptopia hack and various other losses in 2018 which amounted to almost USD 1 billion, Ledger’s CEO believes that people still don’t know how to protect their funds. Speaking about the current volatile situation on the streets of some of France’s major cities in protest of current government moves to regulate industry working guidelines, Larchevêque said that the media had really hyped up the Bitcoin factor: “I think that this call to take the money out of the banks and the protester with the ‘Buy Bitcoin’ sign is something that’s been exaggerated a lot by the media… The yellow vests do not really know about Bitcoin and they do not really think that cryptocurrency will solve their problems.” He says that France is still not at the forefront of cryptocurrency adoption but government regulations are at least moving in the right direction. As for his own company, he admits that the bear market has impacted on product sales, but due to the cyclic history of cryptocurrency the company has simply scaled down ahead of the next bull market. Given that Black Friday sales of the Nano S in November 2018 were almost on a par with 2017, the CEO admits that “the situation is still quite good”. He adds, “There is still a need for a new generation of hardware wallet and consumers are still ready to invest and buy new products. The market is still here.” Follow BitcoinNews.com on Twitter: @bitcoinnewscom Telegram Alerts from BitcoinNews.com: https://t.me/bconews Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here. Image Courtesy: Pixabay The post Ledger: Market Still Here for Hardware Wallets appeared first on BitcoinNews.com.
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By Harold Vandelay on Feb 04, 2019 09:41 am
In a development which may be received in the cryptocurrency space with a certain degree of irony, the United States Securities and Exchange Commission (SEC) has expressed an interest in employing blockchain tech as an analyzing tool in the government department. The SEC wants to hunt out firms which may be able to support the agency identify owners of cryptocurrencies with more clarity, particularly those with wallet addresses for multiple currencies. In order to improve its attribution data capability, the SEC has published the following request: “The SEC is seeking information for potential sources to support the goal of acquiring data for the most widely-used blockchain ledgers, including the universe of available information and transaction details.” The SEC has said that it needs a blockchain solution which will guarantee no data loss to its verification methods and has exacting requirements as to any analytics company it engages for the task. The measures not only carry the obvious irony of using the backbone of a technology which it has spurned in the past to solve an in-house problem but is seen by some in the industry as worrying, clearly demonstrating that the SEC still has cryptocurrencies under their microscope. Another development that was cause for further industry concern happened last year when the US Drug Enforcement Administration (DEA), through Agent Lilita Infante, declared: “The blockchain actually gives us a lot of tools to be able to identify people. I actually want them to keep using them [cryptocurrencies].” Follow BitcoinNews.com on Twitter: @bitcoinnewscom Telegram Alerts from BitcoinNews.com: https://t.me/bconews Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here. Image Courtesy: Pixabay The post SEC Looks to Blockchain for Improved Verification Model appeared first on BitcoinNews.com.
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By Harold Vandelay on Feb 04, 2019 06:37 am
It appears that luxury goods purchased with cryptocurrency have not suffered from the current bear market if the 2018 receipts of firms such as The White Company are anything to go by. Elizabeth White’s company, which caters very much for those that have, and indeed want to spend large sums of cryptocurrency on luxury items, returned USD 250 million in transactions last year, according to latest figures released in January. However, the proprietor claims you don’t need to be rich to sign up. “Luxury is not just for the wealthy, and our customers from a variety of ages, incomes, occupations,” said White in a recent Forbes interview, although the company is clearly aimed at Bitcoin millionaires. She admits that many of her clients need help in purchasing luxury goods such as “Ferraris, Lamborghinis, rare art and jewelry” to clients all over the world paying in crypto. The White Company’s concierge service may be increasingly becoming a niche market but judging by last years figures, there are still plenty of potential clients out looking to spend cryptocurrency. And now that exchanges have more exacting regulations on large cash withdrawals, White’s site is often a go-to alternative when it comes to buying goods requiring fiat payment. She sees the bear market as no hurdle to progress in the industry: “The speculative bubble in cryptocurrency is over, which is a good thing, as it allows the community to focus for more serious, long term projects, such as the solutions that [the] White Company is building.” Another market which has profited from the current status quo is the lending sector with companies such as Celsius, SALT Lending and ETHLend recording higher profits than in previous bull periods. Follow BitcoinNews.com on Twitter: @bitcoinnewscom Telegram Alerts from BitcoinNews.com: https://t.me/bconews Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here. Image Courtesy: Pixabay The post Crypto Concierge Reports Bumper 2018 with $250 Million Transaction Scoop appeared first on BitcoinNews.com.
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By Manuel on Feb 04, 2019 03:00 am
A recent podcast by Planet Money, reflected on a bet made 5 years ago between Bitcoin bull and venture capitalist Ben Horowitz whose firm has made investments worth over USD 50 million into crypto and financial journalist Felix Salmon, paints a peculiar angle on Bitcoin adoption. The bet which hinged on the adoption state of Bitcoin in 5 years as currency, had Horowitz predicting that it would have revolutionized the face of e-commerce such that 10% of people living in the US would use the currency for frequent online purchases. This happened back in 2014 when Bitcoin’s price wavered around USD 360 to USD 760. Meanwhile, Salmon was confident about his bet, stating how Bitcoin’s value will indeed increase but not because of its use but rather based on a speculative rise in value. He cited how those who bought Alpaca socks using Bitcoin would regret, noting the price increase, and would have preferred sitting on it rather than spend it. A sample pool survey was recently conducted to know who had won the bet – gauging how many Americans currently use Bitcoin for everyday online purchases. The bet was concluded recently, having to declare Salmon the winner, as only 3% of 900 Americans had actually bought something with Bitcoin in the past month. Real Adoption The mainstream real adoption of Bitcoin can be approached from three angles: One, where people who actually buy the coin become long term holders (store of value), hoping the price will reach astronomical highs and cash in on the 'patience-profit.' The second, where cryptocurrency adoption has been heavily facilitated by payment infrastructures such as merchant adoption, and the increased installation of Bitcoin ATM kiosks. The third has to do with the introduction of sophisticated markets such as futures contracts and exchange-traded funds (ETFs) for institutional investors. Regardless of the adoption route, most of the early sentiments were founded upon hysterical predictions based on the assumptions that Bitcoin and its underlying technology had come to replace legacy financial systems and hence prices would go as high as USD 50,000. However, these sentiments have been counterbalanced by a rather economically bearish one that renders the initial logic as heavily flawed. The outcome is a juxtapose of a computer science-based backing of the blockchain, Bitcoin, and cryptography, as against economic assessment of currency functions and financial asset manipulation. More so, many now rely on the economic aspects for further adoption at this point. This is the case with the constant lookout for institutional grade investment opportunities like those of the Bakkt; in the hopes of repeating what CME Group and CBOE's Bitcoin futures contract did in late 2017. It is clear though, that back in the early days of the industry’s development, very important structures such as scalability, and regulations were of little concern, and may have consequently cost the industry years ahead of a full-blown mainstream adoption of Bitcoin. Over time, many influencers have taken turns on the prediction wheel; John McAfee had his predictions set to USD 1 million per Bitcoin; Thomas Lee thought at best case scenario, it would reach USD 25,000 in the past year but later on blamed regulatory uncertainty for falling short. So far, none of the near-term predictions have materialized. If anything, Bitcoin as a currency has struggled to maintain upward price projections, and as a store of value, it's really still too soon to tell – 10 years into its development. One thing is certain, treating Bitcoin like some gambling chip is a lot riskier than the real deal. While the tech does hold promise and has ushered in prospects of a great financial revolution, the subject of adoption will apparently continue to be an important one many years from now moving forward. On the tech side, industry adoption has been growing consistently with legacy systems fine-tuning system processes using the distributed ledger. Follow BitcoinNews.com on Twitter: @BitcoinNewsCom Telegram Alerts from BitcoinNews.com: https://t.me/bconews Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here. Image Courtesy: Pixabay The post Only 3% of Americans Bought Something With Bitcoin Last Month, A 5-Year Bet Reveals appeared first on BitcoinNews.com.
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By Manuel on Feb 04, 2019 01:00 am
Another colossal misfortune greets 115,000 crypto traders who had their funds trapped in the now insolvent crypto exchange QuadrigaCX as it has reported that it is unable to access about USD 190 million of funds stored in the cold storage as well as fiat drafts held in custody, according to a filing for bankruptcy with the Nova Scotia Supreme Court on 31 January. QuadrigaCX's misfortune began when the founder and CEO Gerald Cotten reportedly died from Crohn's disease in early December 2018, but the exchange waited until early January to announce his passing. It was common practice for Cotten to move funds from the hot wallet into the cold storage for security purposes, and it was his sole responsibility. However noble the act – protecting users from hackers, – his passing has left the crypto exchange in a predicament, as only he has access to the cold wallet storages. According to the affidavit submitted by Robertson, the storages hold 26,488.59834 Bitcoins; 11,378.79082 Bitcoin Cash, 11,149.74262 Bitcoin Cash SV, 35,230.42779 Bitcoin Gold; 199,888.408 Litecoins; and 429,922.0131 Ethereum as at 18 January and further reports indicated that the exchange was still accepting deposits after Cotten's death. The exchange also had challenges with fiat custody as funds that were deposited in a personal account were frozen – the company had no corporate account due to the nature of cryptocurrency business in the region, and funds operated through third-party has also been held back awaiting further order from the court, according to the affidavit. A total of about USD 32.5 million in fiat is stuck and awaiting court proceedings before any action can be advised. Perhaps there's hope for creditors funds to be paid back, which is however largely dependent on how the court proceedings turn out. According to the affidavit: "The residual balance of these funds [once the cost of the proceeding is deducted], combined with net recoveries from other sources, would be made available to satisfy the claims of Quadriga’s creditors as confirmed through the CCAA process." The exchange hopes for a preliminary hearing on 5 February to appoint a third-party Ernst & Young Inc., to monitor the proceedings. While exchanges provide a rather unique opportunity for digital asset owners to interact and have played important roles in the development of the cryptocurrency industry; seeing that most of the promised platforms are yet to launch a viable product, safety remains an issue. Exchanges continue to battle on the frontline with compliance, market share, liquidity and security threats and perhaps will continue to do so until there are more standard protocols applicable for the industry. Quadriga’s unfortunate situation is bound to trigger some ill feelings towards crypto, and dent what little reputation has been built thus far. Fear that it might follow suit with the biggest cryptocurrency exchange fallout in the history of crypto – the Mt. Gox – is a possibility. This incident has, however, further demonstrated the need for users of crypto exchange to have more active roles in the control of their funds, whether stored on an exchange or in a cold wallet in case of emergencies and unpredictable natural disaster as with the case of QuadrigaCX. As for exchanges, employing contingent approach such as multi-signature security systems can go a long way to prevent disasters such as this from scaling. Follow BitcoinNews.com on Twitter: @BitcoinNewsCom Telegram Alerts from BitcoinNews.com: https://t.me/bconews Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here. Image Courtesy: Pixabay The post Crypto Exchange QuadrigaCX Funds Trapped in Cold Wallet as Only Dead CEO Had Access appeared first on BitcoinNews.com.
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By Harold Vandelay on Feb 03, 2019 11:00 pm
Whether it be in a bull or bear in 2019, there are some markets where cryptocurrencies are thriving; and in both the US and Australia that is very much the Real Estate Market, showing no respect for the downturn in Bitcoin's value over the past months. Properties are still being sold for cryptocurrency in 2019, a trend which has continued since late 2017 when the price of cryptocurrencies went sky high as Bitcoin almost reached the 20k mark. Whether it be a Colorado beach home or a USD 2.3 million luxury estate with 14 acres in California, or in the same state a 70 BTC property with private beach club and restaurant membership, real estate agents are still happy to recommend sellers to Bitcoin as a settlement currency. Other blocks and parcels of land still available for crypto around the US include a 3 bedroom Key West estate on Saddlebunch key or if it is space a prospective buyer needs, how about a 300 acres block of land in Bouse, Arizona, currently on sale for fiat or digital assets. In the US, the trend for sellers to accept crypto rather than not sell at all is still too much to resist, although current low values in cryptocurrency prices and uncertainty surrounding the future of the market after the 2018 slump may have encouraged some buyers to part with their crypto holdings for bricks and mortar, this hasn't deterred those accepting crypto for property. Australia is another property market currently attracting Bitcoin buyers. A regional housing report in Queensland recently cited Ray White Real Estate, one of the country's largest agents, currently selling a luxurious three-bathroom home in Surfers Paradise for AUD 580,000 (USD 420,000) Also a Darwin apartment in the north of the continent is selling for either 126 BTC or AUD 600,00 (UDS 430,000) with the listing exclaiming: "We are happy to accept Bitcoin or any other major cryptocurrency instead of Australian dollars for this property." Another far less modest property advertised on an Australian website is a mid-century hillside estate, available for a cool AUD 3.3 million. "The seller may consider offers including consideration paid in bitcoin or other forms of cryptocurrency," the ad informs. Follow BitcoinNews.com on Twitter: @BitcoinNewsCom Telegram Alerts from BitcoinNews.com: https://t.me/bconews Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here. Image Courtesy: Pixabay The post US and Australian Real Estate Markets Still Want Buyers’ Bitcoins appeared first on BitcoinNews.com.
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Recap - Day in Crypto - BitcoinNews.com for 02/04/2019