Regulators Deliver Good News for Ethereum and Bitcoin, but There’s Less Clarity for XRP

Regulators deliver good news. A top US official has provided some clarity about how crypto assets should be regulated. Bitcoin and ether are not securities, according to a senior Security and Exchange Commission official, meaning they don’t have to comply withstrict US requirements on registration, disclosure, and accreditation of investors. The regulator made no direct mention of XRP, a crypto token that money-transfer company Ripple haspromoted.

Digital assets have been in a bear market this year—bitcoin has fallen some 50%—but ether and bitcoin jumped yesterday (June 14) around the time reports emerged (paywall) on the SEC’s stance. XRP, which like all virtual assets tends to be highly volatile, diverged from bitcoin and ether, according to CoinDesk prices.

“Today is going to be looked back at as somewhat of a momentous day,” said Adam White, general manager at crypto exchange Coinbase, in an interview withpodcast host Laura Shin. Guidance that ether isn’t a security gives the crypto industry the confidence to move forward on projects, he said.

One of those projects could be ether futures at Chicago-based derivatives exchange Cboe. The exchange has been considering futures—which give traders a way to speculate or hedge prices of an asset at some later date—for the crypto asset since it started a contract for bitcoin last year, according to president Chris Concannon. “This announcement clears a key stumbling block,” he said.

As for XRP, Ripple CEO Brad Garlinghouse said in an interview earlier this month that “it’s very clear XRP is not a security.” He argued that it exists independently of Ripple the company, which has built technology that uses XRP to facilitate cross-border payments. He said owning XRP doesn’t provide ownership or equity in his firm, which itself it sitting on a large amount of the crypto asset. “It’s quite different than what a security looks like,” Garlinghouse said.

The SEC may feel differently. An important consideration is whether a third-party—a person, entity, or group–is driving the expectation for a return,according to a speech yesterday by William Hinman, director of the corporation finance division at the SEC. For some investors, the rationale for buying the XRP crypto token is the hope that the company Ripple will succeed at convincing banks and other financial institutions to use Ripple, and the crypto token, as a transmission mechanism for payments.

What would make a digital asset a security, according to the SEC

Here are six factors that the SEC suggests considering when determining whether a digital asset is an investment contract, and therefore a security:

1. Is there a person or group that has sponsored or promoted the creation and sale of the digital asset, the efforts of whom play a significant role in the development and maintenance of the asset and its potential increase in value?

2. Has this person or group retained a stake or other interest in the digital asset such that it would be motivated to expend efforts to cause an increase in value in the digital asset? Would purchasers reasonably believe such efforts will be undertaken and may result in a return on their investment in the digital asset?

3. Has the promoter raised an amount of funds in excess of what may be needed to establish a functional network, and, if so, has it indicated how those funds may be used to support the value of the tokens or to increase the value of the enterprise? Does the promoter continue to expend funds from proceeds or operations to enhance the functionality and/or value of the system within which the tokens operate?

4. Are purchasers “investing,” that is seeking a return? In that regard, is the instrument marketed and sold to the general public instead of to potential users of the network for a price that reasonably correlates with the market value of the good or service in the network?

5. Does application of the Securities Act protections make sense? Is there a person or entity others are relying on that plays a key role in the profit-making of the enterprise such that disclosure of their activities and plans would be important to investors? Do informational asymmetries exist between the promoters and potential purchasers/investors in the digital asset?

6. Do persons or entities other than the promoter exercise governance rights or meaningful influence?

How virtual tokens differ

There are ways to structure virtual tokens so that they function more like consumer items rather than a security, Hinman said. For analysis, he suggested this list of considerations:

1. Is token creation commensurate with meeting the needs of users or, rather, with feeding speculation?

2. Are independent actors setting the price or is the promoter supporting the secondary market for the asset or otherwise influencing trading?

3. Is it clear that the primary motivation for purchasing the digital asset is for personal use or consumption, as compared to investment? Have purchasers made representations as to their consumptive, as opposed to their investment, intent? Are the tokens available in increments that correlate with a consumptive versus investment intent?

4. Are the tokens distributed in ways to meet users’ needs? For example, can the tokens be held or transferred only in amounts that correspond to a purchaser’s expected use? Are there built-in incentives that compel using the tokens promptly on the network, such as having the tokens degrade in value over time, or can the tokens be held for extended periods for investment?

5. Is the asset marketed and distributed to potential users or the general public?

6. Are the assets dispersed across a diverse user base or concentrated in the hands of a few that can exert influence over the application?

7. Is the application fully functioning or in early stages of development?

Hinman pointed out that the US Securities Act is meant to give investors essential information known by promoters of assets, so that people buying into projects can make informed decisions. This is why promoters can be held liable for misstatements.

Factors such as a project’s financing and background are vital for an investor to be able to make sound decisions. While ether and bitcoin don’t qualify as securities in Hinman’s view, initial coin offerings (ICOs)—a kind of crowdfunding that’s been turbocharged by crypto-token speculation—often do qualify and may be better off adhering to those regulations@BPI

Bitcoin, Litecoin, Ethereum Now Accepted by an Australian Pharmacy

An Australian Pharmacy  Accept Crypto . TravelByBit, on June 18th, announced another merchant on board to accept payment in cryptocurrencies. By doing this, TravelByBit introduced a new industry among their list of merchants! Lugarno Pharmacy, a store near Sydney is now accepting cryptocurrencies – Bitcoin [BTC], Litecoin [LTC], Dash [DASH], and Ethereum [ETH] for medications.

TravelByBit is an Australian company, who lets travelers pay in a cryptocurrency of their choice. The company designs tourism routes and provides their merchant list with a digital currency payment platform. The merchant list consists of various industries from real estate and accommodation to travel information providers and bike rentals. It also lends support to crypto-community for overseas travel or tourism around Australia. On its website’s introductory video, they have mentioned their goal to run a “Bitcoin Travel Movement”.

Now the cryptocurrency market is not in the best condition, and a drop of the cryptocurrency prices frightened investors. Nevertheless, more and more companies are starting to accept cryptocurrencies as a payment method@BPI

Analisis Sentimen Pasar IOTA, Bitcoin & Ethereum 19 – 20 Juni 2018

Analisis  Iota, Bitcoin dan Ethereum. Sentimen pasar adalah salah satu cara terbaik untuk menentukan arah keseluruhan yang akan diambil pasar. Itu karena memberi Anda gambaran tentang apa yang dipikirkan investor tentang pasar pada titik waktu tertentu.

Atas dasar ini, mari melalui sentimen IOTA (MIOTA), Ethereum, dan Bitcoin, untuk mendapatkan gambaran yang lebih jelas tentang apa yang akan terjadi dalam minggu mendatang.

Bitcoin (BTC)

Bitcoin adalah pemimpin pasar dalam crypto, dan arahnya cukup banyak arah untuk seluruh pasar. Melihat sentimen Bitcoin di berbagai forum selama 24 jam terakhir, sekitar 74% investor positif tentang hal itu.

Itu adalah indikator bahwa sebagian besar investor mengharapkan bitcoin berkinerja baik dalam beberapa hari mendatang. Sentimen ini terutama didorong oleh fakta bahwa bitcoin telah turun secara signifikan dalam satu minggu terakhir, dan sebagian besar investor mengambil keuntungan dari posisi terendah ini untuk membuat entri pembelian.

Untuk seseorang yang ingin membeli bitcoin, ini adalah waktu terbaik untuk memperhatikan level dukungan. Jika dukungan bertahan, entri beli dapat menghasilkan hasil yang baik dalam 24 jam ke depan, didorong oleh peningkatan tekanan beli.

IOTA (MIOTA)

Dalam 24 jam terakhir, IOTA (MIOTA) telah memiliki sekitar 21 menyebutkan di forum crypto utama. Dari ini, 81% dari mereka positif. Itu adalah indikator bahwa semakin banyak investor yang bullish di IOTA (MIOTA) saat ini dibandingkan dengan bitcoin.

Dari sudut pandang fundamental, ini mungkin didorong oleh kemitraan minggu lalu dengan Volkswagen, bahkan saat pasar merosot. Kemitraan itu terjadi hanya beberapa hari setelah tim IOTA merilis rincian proyek Qubic, IOTA (platform kontrak pintar MIOTA. Dengan demikian, investor mengharapkan IOTA (MIOTA) untuk memimpin pemulihan minggu ini, sekarang penurunan pasar minggu lalu tampak telah berkurang.

Hal ini juga didorong oleh fakta bahwa IOTA (MIOTA) kehilangan bagian yang baik dari nilainya minggu lalu, dan investor beroperasi dengan asumsi bahwa jika itu rusak ke atas, crypto ini dapat menawarkan cara pengembalian yang lebih tinggi yang sebagian besar sisa pasar.Untuk berinvestasi di IOTA (MIOTA) dalam 24 jam ke depan, yang terbaik adalah melihat keluar untuk volume.Jika membeli volume naik, itu akan menjadi pengaturan yang sempurna untuk masuk-lama.

Ethereum (ETH)

Sentimen seputar Ethereum (ETH) dalam 24 jam terakhir sebagian besar positif, dengan 73% pernyataan positif di forum online yang berbeda. Itu adalah indikator bahwa investor mengharapkan Ethereum berkinerja baik minggu ini.

Sentimen positif Ethereum terutama didorong oleh analisis teknis. Dalam 24 jam terakhir, Ethereum (ETH) telah menembus di atas batas psikologis $ 500 dua kali. Investor berharap untuk mempertahankan di atas level harga ini setidaknya selama 24 jam.

Untuk seseorang yang ingin berinvestasi di Ethereum dalam 24 jam ke depan, ini tampak seperti saat yang tepat untuk membeli. Satu-satunya hal yang perlu Anda perhatikan adalah volume. Jika volume meningkat, kemungkinan Ethereum akan bertahan di atas $ 500 sepanjang minggu@BPI

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