The Euro is Coming to Binance, Other Fiat Currencies to Follow

Fiat Currencies in Exchanges. After months of rumours, Binance CEO Changpeng Zhao has confirmed that the exchange will soon offer fiat pairings—starting with the Euro.

The first fiat pairings will soon hit the world’s largest crypto exchange with Binance CEO Changpeng Zhao telling Bloomberg, the exchange will “soon allow customers to convert digital tokens into fiat currencies.”  The move will be the result of months of planning, which has seen Binance shift jurisdictions several times to evade restrictive regulations. After brief stints in Japan and Hong Kong, the China-founded exchange transitioned to Malta, where it was finally able to open a bank account last week.

Lenient regulations on “the blockchain island” will enable the exchange to open a local subsidiary platform, as a representative told CoinTelegraph, that will allow the use of crypto-fiat trading pairs, initially in the form of Euro-Bitcoin.

International expansion

While the last six months have seen a steep decline in cryptocurrency markets caps, Binance has been busily expanding, growing a user base of two million in January, into nine million by June. Fiat pairings are the next natural step, and Euro trading is just the beginning, according to Zhao, who gave no further details, but has spoken in previous interviews of plans to add fiat-crypto trading in other destinations. The company has strong ties with crypto-friendly jurisdictions around the world, and is said to be in talks with authorities and banks in Taiwan.

On the nearer horizon though, is Jersey, where Binance reportedly plans to open a crypto exchange office with a staff of around 100. Binance are said to have chosen the location for its “highly developed digital infrastructure, robust regulatory framework, and world class financial services sector.” The Jersey Financial Services Commission introduced “cryptocurrency sandbox” legislation in 2016, aimed at enabling businesses to experiment with virtual currencies “in a controlled and transparent manner.”

Just as significant perhaps, is the fact that the local economy is based on the pound (GBP), which could potentially provide a backdoor to Sterling pairings. U.S. citizens, however, might need to wait a little longer. CZ took to Twitter earlier this year to announce there were no immediate plans for USD pairings.



Competition for coinbase?

Although Binance might have captured the majority of the world’s cryptocurrency trading volume, they are beaten to the fiat post by Coinbase, who provide the preferred gateway for exchanging traditional currencies with crypto. Coinbase, who are more focused on long-term investment than Binance, are still the go-to fiat on ramp, especially for those new to the space. A simple user interface makes it easy for newcomers to purchase one of the bigger coins here, and then send it over to an exchange to buy altcoins.

By combining a fiat gateway with a wide variety of cryptocurrencies, Binance would not only make the process simpler, but also provide healthy competition for the likes of Coinbase, who have recently announced intentions to expand their offering by dealing in tokenized securities.

A liquidity boost

Increased altcoin pairings would also bring greater liquidity to the market, potentially diminishing the importance of Bitcoin as a bellwether for the market as a whole. Altcoin fans have long decried the coupling of bitcoin with their favourite cryptos, which means they remain subject to the price swings of their volatile progenitor.

A stable fiat gateway that provides immediate access to a range of altcoins, would make it unnecessary for buyers to first purchase one of the more popular coins—Bitcoin, Ethereum, Litecoin—and thus make it more likely for altcoins to take on a value of their own reckoning.

Up until now, strict regulation has made this impossible - but the situation appears to be changing, as other exchanges like Bittrex have recently introduced fiat currency support.

With household names like Fidelity, Goldman Sachs and Nasdaq contemplating moves into cryptocurrency, exchanges like Binance will need to keep pushing forward to stay one step ahead of the game@BPI

Tron Buys BitTorrent, Where to Next for TRX?

Tron buys BitTorrent. In a Variety report released earlier this week, the entertainment business magazine has reported that the Tron Foundation appears to have purchased BitTorrent.

Justin Sun, the normally vocal CEO of Tron, has been uncharacteristically silent about the deal — leaving the market to speculate as to why the purchase occurred and how Tron might hope to integrate Bittorrent’s file-sharing technology into its grand vision?

Originally launched in 2001, BitTorrent allows users to download files via a client like utorrent or Deluge. The network operates by downloading small pieces of files for a user, from many different web sources that host the file. This means it is a ‘true’ P2P model, unlike other clients like Kazaa and Limewire, where a ‘publisher server’ posts files and then facilitates downloads.

Bittorrent’s operating philosophy relies to some extent on a ‘pay-it-forward’ system where users ‘seed’ (download a file and then host it), as opposed to ‘leech’ (download but do not host), because they are altruistic and want to facilitate greater network activity.

Although the BitTorrent client has built a large user-base, its model has a few key issues. Firstly, most users generally stop seeding files once they have completed downloading a file. Secondly, older less popular files that aren’t being actively downloaded are not generally seeded and thereby can take a long time to download. Tokenizing the BitTorrent client could potentially alleviate these issues.

Potential business models

A ‘Tron Torrent token’ could act as the reward for seeders to host portions of files. One potential model is a flat reward every time a seeder’s file is downloaded, incentivizing more active hosting.

Additionally, for files that are popular enough that there is some download demand (a movie with a cult following for example), but not enough that there are active seeders for it, an incentivized token system could bridge the gap for users looking for obscure torrent downloads.

A marketplace where users could post files that they are looking for, and rewards can be attached to those postings, could be created. I.e. postings like;

“10 TRX tokens for seeding 100mb of Office_Space.Mp4”

This would incentivise network seeders to download and retain not just popular files, but also obscure ones. This could potentially create a collection game element akin to CryptoKitties, where seeders download files that may become fashionable semi-randomly.

In the same way, seeders could advertise their hosting services and be market makers, letting the network know how much it would cost for a seeder to lend processing power and host part of a file.

Existing competitors

Tokenizing a file sharing client has novelty, and not surprisingly there are already blockchains, such as IPFS and Upfiring, that are embracing this model. In some regards, they possess key advantages over a tokenized BitTorrent model.

A key disadvantage of the BitTorrent model, for example, is that users can only download files that exist within the contained torrent ecosystem, whereas IPFS uses a model called Bitswap that lets users access any type of file. Based on this technology, IPFS has set up a file marketplace called filecoin, where incentives for users to host on the network are similar to those in the described tokenized torrent marketplace.

Upfiring runs on smart contracts, which differentiates it from traditional file-sharing services. File exchanges in Upfiring are operated as smart contracts between host and clients, UFR tokens work as gas to fuel the contracts, which then initiates the movement of files by nodes. Once verified, seeders receive their hosting reward. This system adds utility to the network, for example, features like spam-filter code can be written into a smart contract, adding benefits over clients simply ‘paying’ file hosters to seed files.

Filecoin was able to raise US$257 million via ICO, more than projects like TEZOS, in a month of activity during September 2017. The vast majority of funds were raised via SAFT (simple agreement of future tokens), only available to accredited investors. Pre-sale purchasers included major VC names like Sequoia Capital and Andreessen Horowitz. Upfiring is a smaller project and currently has a market cap of $2,236,257 USD.

Comparatively, Tron has a current market cap of over US$4 billion. If needs be, it certainly has funds to inject into any new blockchain file sharing project and develop new features to secure its position within this space.

Conclusion

What the Tron foundation hopes to achieve with the Bittorent buy remains unclear although there is clearly an opportunity to monetize the BitTorrent network and address some of the incentive problems within it. That said, there are already existing blockchain file-sharing platforms that offer their own unique utility — and the Tron network should consider its next steps carefully@BPI

Venezuela Starts Monitoring Bank Accounts for Crypto Transactions

Bank Accounts for Crypto Transactions. The Venezuelan government began monitoring the bank accounts of citizens for cryptocurrency transactions. Accounts of users through which digital currencies were output will be blocked. The government regards such actions as "undermining the national currency".

Account checks began last week. According to the verification agencies, the actions are aimed at combating money laundering in the country. In addition, Venezuelans often buy cryptocurrencies at one price, and then sell it for another.

According to El Aissami, who is the current vice-president of Venezuela, the government will monitor banking transactions related to digital currencies and pursue those citizens who are engaged in speculation.

“This is part of a war to hit the financial system of the country,” Aporrea publication stated, “and they [the government] will exercise future actions to hit those who try to conspire through cryptocurrencies.” 

Recall that earlier in the country were licensed from three crypto exchanges. At the same time, the government soon realized that the amount of cryptocurrency transactions was not affected in any way@BPI

Australian Tax Administration Against Crypto Investors

Tax and Crypto Investors. Specialists of the Australian Tax Administration confirmed that they are fighting with cryptocurrency investors. Back in the spring, they were announced to conduct work in the direction of user identification. According to Liz Russell, a senior tax agent at Etax.com.eu, the Australian tax authority is on a "war path" with investors. The main goal is to achieve full payment of taxes, with actions that are related to cryptocurrencies.

The Office considers cryptocurrencies as assets. The profit from the sale of digital currencies is governed by the provisions on the payment of taxes on capital gains.

Due to the fact that the Bitcoin (BTC) jumped in price to 20 thousand US dollars at the end of last year and since that time they have fallen to 6,5 thousand dollars, the cryptocurrency investors had an opportunity both to receive and to lose the invested facilities. Liz Russell points out that this situation speaks of losses from sales of cryptocurrency received from the sale of other assets, such as digital currencies, and investment funds, as well as shares.

An exception to the rules is that crypto investors that use cryptocurrencies to pay for services. For example, Brisbane is the world's first cryptocurrency airport, which will be launched soon.

In mid-March, the country's Tax Service announced that a new type of fraud had spread. Attackers pretended to be employees of the Australian Tax Administration and collected taxes from users@BPI

Italian Authorities Seize Bitcoin From BitGrail Wallets Following Court Order

Italian Authorities Seize Bitcoin. Italian cryptocurrency exchange BitGrail has announced that bitcoins (BTC) stored in the firm’s wallets have been seized by Italian authorities, according to official announcement published June 15.

The statement says that authorities removed the funds from the exchange’s wallets following a court order by the Tribunal of Florence on June 5, but did not mention the current worth of the seized assets:

“On June 5, 2018, pursuant to the Tribunal of Florence orders, the bitcoins contained in the company’s wallets were seized and brought under control of the judicial authorities pending further Court decisions in the pre-bankruptcy proceeding.”

The seizure of BitGrail’s BTC follows a petition to the court filed by victims of the BitGrail hack, asserting that the exchange is bankrupt under article 6 of Italian bankruptcy law. The petition was filed on behalf of a BitGrail creditor, Espen Enger, whom over 3,000 claimants have allegedly contacted so far.

In February, BitGrail suffered a cyber attack that caused the loss of 17 million Nano (XRB, formerly Raiblocks) that was worth $187 million at the time. After trading was halted, CEO Francesco Firano argued that it would be impossible to refund the stolen amount.

The hack caused a series of arguments between BitGrail and the Nano Foundation ас it was unclear whether hackers exploited a BitGrail security weakness or a vulnerability in Nano’s blockchain.

In April, the Nano Foundation announced it would support a legal fund to provide all victims of the hack with equal access to representation to pursue their legal interests associated with BitGrail’s insolvency.

On May 3, Bitgrail reopened, but three hours later shut down operations at the order of the court of Florence. The court ordered an immediate closure of the exchange in accordance with a request made by Bonelli law office on behalf of a client. The exchange stated,

“Even though we don't agree with this decision, we are obliged to respect the law and to suspend any BitGrail business immediately.”@BPI

Internet Company Asks Israeli Authorities Permission to Pay Salaries in Bitcoin

Israeli Pay Salaries in Bitcoin. The Israeli high-tech sector is currently undergoing a severe talent squeeze, with companies having to compete over employees with higher salaries, stock options and better perks. One such company might have found a new way to attract and retain tech-savvy staff in this environment: offer to pay salaries in bitcoin. Now it only remains to be seen if the country’s authorities will permit the plan.

An Internet company with offices in Tel Aviv, Spot.IM, is in negotiations with the Israel Securities Authority (ISA). The talks are said to be primarily about the appropriate exchange rate, a critical issue for making this work, and it is expected that the sides will reach some agreements over the next month or so, which will allow the plan to go forward. The company has also brought the matter to the attention of the Labor Ministry, which says its officials are looking into the subject. The plan is that any employee that wishes it can accept the total or a portion of his paycheck in bitcoin, with the company absorbing the costs of the high shekel conversion fees.

Spot.IM is not part of the cryptocurrency ecosystem but of the established Internet industry. It helps media website manage their social engagement and comments section, and among its clients it lists Time Magazine, NBC, Huffington Post, Engadget, Fox News and other big names. The company has raised a total of about $38 million since it was founded in 2012, and its latest round in November 2017 brought in $25 million in Series C funding from Russian billionaire Roman Abramovich and other venture capitalists.

While Israeli law doesn’t officially recognize bitcoin as a currency, nor a security, the tax system does accommodate for including anything of value in calculating salaries. As such, it’s not as if the company would violate the law by not approaching the regulators for permission beforehand. Therefore it seems that, besides an abundance of caution by its legal support, the goal is mainly to prevent future complications with the hostile banking system by getting a seal of approval from the state bureaucrats.

Ido Goldberg, Head of Spot.IM’s operations in the country, told Israeli newspaper Calcalist that:

“As ones who deal with some of the most advanced technologies every day, we are great believers in the future of cryptographic currencies. Still, currencies are built on trust, and to create such trust companies, organizations and institutions will have to recognize cryptographic currencies as legitimate.”@BPI

Will Cardano [ADA] be Affected by the New Canadian Regulatory Framework?

New Canadian Regulatory Framework. "Excellent, thank you, Canada," said IOHK CEO, founder of Cardano [ADA] when he saw the news that the Canadian government had announced that all cryptocurrency companies would be regulated. In accordance with the new course of the Canadian government. Under the new bill, all businesses that deal with digital currency trading will now be regulated as a company with cash (MSB).

The regulatory framework has been the subject of discussion on the cryptocurrency market for a very long time all over the world. Under the new law, Canada's financial ecosystem will be protected from activities to combat money laundering and counter terrorism. At this point in time, Canada is the first country in the world that has officially stated how exactly the enterprises connected with the cryptocurrency will be regulated.

In the official text of the document from the Government of Canada stated:

“The proposed amendments to the regulations would strengthen Canada’s AML/ATF Regime by updating customer due diligence requirements and beneficial ownership reporting requirements; regulating businesses dealing in virtual currency; updating the schedules to the regulations; including foreign money service businesses (MSB) in Canada’s AML/ATF Regime; clarifying a number of existing requirements; and making minor technical amendments.”

New payment methods on the Internet allowed foreign companies to offer MSB services in Canada without a state license. This is a general rule, implying all enterprises related to cryptocurrencies, but Cardano paid particular attention to market speculators.

It should be noted that for the time being this is just a bill that has not yet been adopted. To be honest, it is not very clear how the government will be able to fully implement it. We'll see for sure, but regulators frighten us not for the first year, but the blockchain would not be a blockade if it could just be taken and banned or even controlled@BPI