Alfa Bank and Sberbank are amongst the first global pioneers that took the initiative to pilot cryptocurrency portfolios. These portfolios are intended to serve a limited number of private clients. The efforts are yet restricted to specific clients that will purchase shares of funds to trade in significant cryptocurrencies. These currencies will include the most prominent cryptos in the market including Litecoin, Bitcoin, Ethereum, Bitcoin Cash, among others.
Kommersant newspaper gave out its report last Friday, bringing out the fact that these piloted portfolios will be restricted to private clients only, and the operations will be under the supervision of Bank of Russia.
Sberbank is the central bank owned by the state that maintains and processes employee paychecks for all government offices in Russia. On the other hand, Alfa Bank is one of the leading private banks across Russia. Alfa Bank is planning to make its mark in crypto commerce using the Group IB, AddCapital investment fund, and National Settlement Depository.
The deputy chair of Sberbank Private Banking; Ana Ivanchuk said:
“We’d like to offer our clients an absolutely transparent way to invest in digital assets with full compliance with regulations that will let them invest in the product they are interested in Russia.”
Anton Rakhmanov, who is the manager of Alfa Bank’s private banking branch, said:
“Our goal is to speed-up the recognition of the digital assets as legitimate financial assets as soon as possible.”
AddCapital is being considered for taking charge of solving technical challenges for the venture. The enterprise played an integral role in unfolding recent pre-sales of the Telegram Tokens. CEO Alexey Prokofyev suggested that the endeavor will be supported by investors seeking a share of the fund.
The six crypto coins maintained by the user portfolio will be constantly revised about four times every year. This revisal will include managing and be cross-checking the proportions by balancing them against a specifically devised trading algorithm.
Alexey Prokofyev added,“The shares are liquid, and a client can send them for fiat currencies any time.”
Moscow Exchange Group has decided to appoint the National Settlement Depository as the designated custodian for the project. Testing the portfolio operation will roughly take 45 days, however, the specific durations and proceedings have not been intimated yet.
Sberbank has refused to give out any statement on this topic.
Solidity is incorporated with lots of applications, and each one of them is equally important. Today, we will discuss the applications of solidity and how they are being used.
All the applications of the Solidity are based on contracts as I have discussed in the earlier blog that it is a contract-oriented language. Now, I will discuss few applications to let you understand their usage and how they work in detail. It is not possible to address all in detail, but I will give brief information about every topic.
Solidity applications and their uses are
Real world scenario of voting comprises of various fraudulent techniques like manipulation of data, booth capturing, fake voters, and manipulation in voting machines, etc. But to solve few of these problems, we could make use of contracts in doing envoy voting so that everything will work smoothly, transparently and automatically. Given below is the code for voting.
Fig.1. Contract named as Ballot
A contract named as Ballot is defined in which two structures named as Voter and Proposal are defined. Inside these two, many integers, boolean and address are defined such as weight, vote, voteCount, delegate and voted.
One contract per ballot will be created, and the creator will have the power to serve as the Head. Head will have the authority to provide the right to vote to each address separately.
A person associated with the address can select himself, or to any other person, he wants to give his vote. In the end, a proposal with the most significant number of votes will be displayed using winningProposal() function.
Fig.2. Functions defined in Ballot Contract.
Mapping of the address is done following a proposal is made. Functions named as Ballot_, giveRightToVote, delegate are defined, and the logic is written on how these functions will work or what each task will do separately. You can go thru it and will be able to understand the simple logic of the workflow.
Fig.3. Functions winningProposal() and vote()
Function vote() check if the vote given is valid or not and calculates votecount using voteCount and winningProposal() will provide the final output showing who wins the proposal.
Crowdfunding can also be done using contracts and can solve various problems associated with it like a commission of third party, issues related to managing data, etc.
Crowdfunding doesn’t require any centralized system to manage things as smart contracts can workout far away better than non-trusted centralized systems.
Implementation of Blind Auction in solidity is straightforward on ethereum. In this, an open auction will be created in which everyone can make each other’s bid. After that, a blind auction will be designed where it will not be possible for anyone to see the bid until it ends.
Everyone involved in the bid can send bids for the bidding period. Bidders will be bound by the bidding as some money or ether will be included.
There are many other applications also which are a part of Solidity language. I would try to cover them in future blogs.
The recent advancement in blockchain technology has changed the way we perceive a business. Whether it is the making payments through a Crypto channel or getting funds for your new business, blockchain has covered it all. The technology has provided a common platform for investors and entrepreneurs to come together and make most of the opportunity.
With the first Initial Coin Offering launched in 2013, the world witnessed the potential in blockchain business. By 2016, ICOs were the buzzword in every industry. As a business investor, it is definitely worth looking into the rising ventures. In order to make a large profit, you must look beyond the Bitcoin.
In such a scenario the traditional initial public offerings are an excellent opportunity to get coins at a lower price. These coins immediately rise in value when the ICO is over. However, on the flip side, they might lose value and crash. In such cases, the investors never recover their investments.
Here are a few tips and tricks you can use to spot potential baggers and save yourself from scammers:
The Team Is More Important Than The Business
To understand the potential of the venture, you must do a background check on the team member profiles. Experience in the service industry, and their knowledge in the technical expertise relevant to the blockchain will determine the capabilities. What you should be looking for is the perfect balance between professional and business expertise. Lack of experience Might indicate incompetence which might eventually risk your investment.
Understand The Product
Before investing in the ICO, you must understand the product and its potential. Does this product offer something unique and useful to the market? Identify the target audience and how they will be benefited from the product. Make your evaluations as for how well will the product do in the niche market.
Pay close attention to the proposed Business models and understand the roadmap they wish to follow once their ICO goal is met.
Understand The Tokens
Get a clear understanding of the tokens they offer and what purpose will they serve. Mostly these tokens are “utility tokens” that means specific users on their respective platforms use them.
Utility tokens are the most common but are limited to the specific platform only. This means the user can just trade these tokens on the platform. Such token having few limited usages are hence prone to higher risk as they turn worthless once the platform loses traction.
A famous example of “utility tokens” is Ether. Ether is used to make transactions over the Ethereum platform. The hell in the functioning of the platform and offer more value since they are tradable for other services and can be used to make exchange over any cryptocurrency supported by the Ethereum blockchain network or the ERC20.
Utility tokens add more value to the organization since not only they can be traded, but you can also use them to enjoy services available on the platform.
The relation between the shareholders and the team that goes behind the project is an essential aspect of any ICO. A strong partnership must be established between all the agents that are responsible for the success of the ICO. Robust presale results are one of the good indicators you can look for to understand the potential of the ICO. The technical and business experience of the team behind the project determine how well they are capable of handling tough situations.
Analyze The Sales Route
Review the token sale implementations. Learn what the aspects that affect the success and failure of the ICO are. Understand how you can participate and make the ICO successful. Go through the existing stories of the successful ICOs and what were the turning points that made them successful.
Only after understanding all the aspects of the business and technology you can be sure of advantages your ICO possess. Learn as much as you can and make necessary decisions to shine. Wish you all the luck for your Crypto-venture!
Solidity has various advantages and disadvantages and today’s blog is to discuss those merits and demerits to reach one more milestone near to the learning of solidity.
Pros of Solidity
- Solidity provides Inheritance properties in contracts including multiple level inheritance properties.
- Smart contracts provide a secure, easy and reliable medium for various sources which have involvement of two parties to do an agreement on something.
- Contracts support complex member variables in hierarchical mapping and structures.
- Multiple type-safe functions are also supported in Solidity through facilitating ABI(Application Binary Interface).
Cons of Solidity
- Once a contract is made it cannot be upgraded. We cannot add additional features to it.
- Concerning bugs, other languages have a definite edge over this because different languages have a large number of developers to resolve them.
- Arrays and Strings structure and usage are very complicated due to the unavailability of Standard Library(Every language have its library to perform functions).
- In smart contracts, it’s not an easy task to tell any language everything about the real world problems because languages work on the commands given by us.
- Data is only available only from transactions. There is no other source for the information which in terms creates a problem for the machine to work efficiently.
I have described many limitations of solidity, but the best part about this language is that these limitations can be resolved through various strategies. For example, data insufficient problem can be addressed using Oracle systems. We will discuss everything in details about how we can solve these problems in further blogs about solidity.
Gender inequality is not a matter of debate anymore. The same trend has been witnessed in the blockchain market. Whether it is an upcoming ICO venture or the statistics of total investors, the women power seems to be lagging behind.
In a recent event of North American Bitcoin Conference, out of the 88 speakers, there were only 3 women. Moreover, the party after the conference was held at a strip club.
A recent venture to make a change is the Mogul that conducted an event on “Women in Crypto.” They quoted the NYTimes saying only 4-6% of the investors in the cryptomarket are women. They wish to change it and empower women to be a part of the global motion. This event was held on 5th April at Hearst Tower NYC.
Another such example is of the women in blockchain foundation who are determined to spread awareness and encourage women to participate in the business trend. They aim at educating women about the potential of this technology and how they can make the most of it.
Even in the current crypto market, women face the same inequalities that they suffered before. The overwhelming male domination over the technology development, distribution and wealth accumulation has reduced the opportunities for women in the ecosystem. If no measures are taken, the situation will only get worse, entrenching the present gender inequality.
The situation is worse in an anonymous crypto market since it is decentralized and no authoritative body is present to regulate the resource distribution. By enhancing the opportunities for women, we can assure a long-term involvement and justified growth for both genders.
In a recent survey of October 2017, conducted by Reddit user loveYouEth, found that only 4% of Ether users were women. Also, only 14% of the users of their wallet holders were women.
In the recent statistics provided by Coin Dance, there is only 8.86% engagement of women in the Bitcoin Community.
Measures to be Taken
Several women leaders suggest that to promote the influence of women in the Crypto is to publicise the achievements and contributions they made in the crypto market. Several examples of such Crypto Leaders are Maddie Callander: Boost VC director of operations, Athena Capital founder Meltem Demirors, BlockCypher founder Catheryne Nicholson and BitPesa founder Elizabeth Rossiello.
To achieve higher engagement of women in the blockchain technology; the community must come forward to spread knowledge of the business. No matter how complicated it seems, once there is enough knowledge of the blockchain, more and more women investors will come forward to benefit from the trend.
Many people misunderstand the underlying concept and mistake it as an industry built for software engineers only. Although the technology is reasonably advanced and may look overwhelming for many, there is obviously a large number of possibilities for all in this domain. It is time that both genders come along and contribute to the new world.
What is Solidity?
Solidity is a language developed to provide a platform to develop and implement smart contracts. It is a statically-typed programming and contract-oriented language developed by Ethereum(a secure decentralized transaction ledger) developers. The idea of solidity was originally proposed by Gavin Wood, who developed Ethereum in August 2014. After this, a team of Ethereum Developers led by Christian Reitwiessner developed this language.
There are various integration platforms(compiler to compile, execute and run code) available to implement Solidity and one of the most famous among them is ‘Remix’. As remix is browser-based IDE, it is easily available and accessible from anywhere. There are various other integration platforms which will be discussed in later blogs.
It acts as a tool used to generate machine level code and have a compiler which reads the high-level language and breaks it into smaller and simpler instructions to execute on EVM.
Simple Example of Solidity
There are various examples of solidity, but SimpleStorage is one of the easiest example to understand.
An Output of SimpleStorage Contract
In next blog, we will discuss the advantages and disadvantages of solidity language in detail.
Bitcoin Struggles Above $9000 as Bull Breakout Stalls
Bitcoin (BTC) is presently attempting to discover acknowledgment over the $9,000 stamp, thanks to the noteworthy bullish breakout.
The cryptographic money crossed the longing dropping trendline in a persuading way and shut well over the resistance at $8,459 this Friday, flagging a bearish-to-bullish pattern change.
Be that as it may, over the most recent 48 hours, BTC has attempted to clutch profits above $9,000 throughout the end of the week, demonstrating bullish depletion around the key resistance.
As of composing, bitcoin is changing hands at $8,940 on Bitfinex that is up close to 40 percent from the April. 1 low of $6,425.
BTC made a little doji candle on Saturday, creating uncertainty in the market center. At the point when seen against the scenery of a 40 percent rally from $6,425, the doji likely flags bullish depletion. Further, BTC experienced misfortunes on Sunday, affirming a bearish doji inversion trend.
The cryptographic money is hinting at weariness almost a stable protection zone of $9,177-$9,280, shown by the accompanying elements:
- $9,177: March 21 high.
- $9,278: 23.6 percent Fibonacci retracement of the auction from the Dec. 17 high to Feb. 6 low.
- $9,285: 100-day Moving Average(MA).
- $9,280: Feb. 25 low.
- In the coming time, BTC looks set to test the 200-day MA arranged at $9,784 and could hit the $10,000 checkpoint.
- Indications of bullish depletion close to the critical resistance zone show scope for a minor pullback, perhaps to the rising 10-day MA situated at $8,423.
- Just an every day close (according to UTC) beneath the plummeting trendline bolster (previous protection) would flag bullish nullification.
The Code for Ethereum’s Consensus Change Is Now Ready for Review
New code written to revolutionize the way the Ethereum organize achieves consensus is presently prepared for review, according to the developers.
Ethereum change proposition (EIP) 1011, known as Hybrid Casper FFG (another way to say “Friendly Finality Gadget”), would actualize the initial phase in a long-term arranged shift from the energy-concentrated mining process and toward a professedly greener strategy popularly called “minting.”
Ethereum’s existing consensus protocol – the way the system consents to add another block to the chain. This is called proof-of-work and expects assets to be exhausted as its proof.
Ethereum’s maker Vitalik Buterin and different engineers have talked about in the long run moving to a proof-of-stake model, in which clients secure Ether up in different wallets and poses a risk of losing these “stakes” on the off chance that they don’t take after the consensus rules. That arranged progress to proof-of-stake is known as Casper.
EIP 1011, if actualized, would be an incomplete advance toward the full move to Casper, presenting a hybrid framework that joins proof-of-stake and proof-of-work, an approach talked about in papers divulged a year ago.
Casper, while long really taking shape, is as yet questionable in a few quarters – for instance, a security analyst at VMware called it “fundamentally vulnerable” a month ago. However, Danny Ryan, one of EIP 1011’s writers, alongside Chih-Cheng Liang, told kindred developers amid a gathering that the proposed code is “prepared for a survey, open talk, and so forth.”
Ryan included that improvement work for Ethereum customers could start soon and that he was relating to the formal confirmation engineers. He added that as these bits of the baffle are motivating nearer to being finished, he’ll suggest that it’s an excellent opportunity to begin discussing fork block numbers.
As Ryan recommends, the change won’t be comparable with existing Ethereum programmings, implying that the system should experience a hard fork to be executed. There’s still some approach to be implemented before that happens.
Ryan continued that with the concerns on testing he doesn’t know when precisely that happens including that he would leave the EIP up for talk somewhat longer before they begin doing a measurement on that side.
Russia’s Supreme Court Orders Review of Crypto Website Ban
The Supreme Court of Russia has instructed a court in the city of St. Petersburg to consider an application for a reversal of the decision against a blocked digital money data site.
As per Russian lawful data site RAPSI, the Vyborgsky District Court of St. Petersburg blocked Bitcoininfo.ru in 2016, guaranteeing that cryptographic forms of money are a method for virtual transactions and collection, and hence, the arrangement of related data is illicit on the grounds that it undermines the nation’s sole lawful cash – the ruble.
The court did not welcome the litigants to the previous trial, and they were uninformed of the court’s choice to obstruct the site until the point that entrance was cut off Russian crypto distribution. Anycoin said that the first appeal time frame shut by that point.
Bitcoininfo apparently tried to offer the decision regardless of missing the window, yet the court declined to audit it. Anycoin revealed a month ago that the Supreme Court would review the case after consequent surveys, which it has now passed onto the St. Petersburg City Court as of Friday.
As per RIA Novosti, the same St. Petersburg court assessed a similar interest in February and gave a choice to square 40 bitcoin-related locales.
The Russian government has communicated resistance to informative websites about cryptographic forms of money. A year ago, its national bank said it would support endeavors to piece access to external sites offering digital forms of payment in the nation, referring to dangers to financial specialists as its defense, as already announced.
Softbank Eyes Carbon Emissions Cuts with Green Energy Blockchain Pilot
In an attempt to diminish carbon emanations, Japanese innovators and power firms are propelling a pilot venture expected to enable customers in rural zones to exchange sustainable power source over a blockchain-based stage.
Decided to begin in June this year and embraced by Japan’s Ministry of the Environment, the task will be regulated by vitality exchanging startup Power Sharing with innovative help gave by energy partnerships, for example, Tokyo Electric Power Co. Furthermore, monetary leader Softbank, as per an announcement that was given this Monday.
Softbank said it would loan its ability in authenticating necessary data about sustainable power source exchanging. That information and the power exchanges will then be recorded and executed over the blockchain stage together created by the accomplices.
The expectation, as per the announcement, is to utilize this client to-client system to boost occupants in rural Japan to change to a sustainable power source, of which they can offer any abundance amount, as a feature of Japan’s push to lessen carbon dioxide outflows.
While conventional concentrated frameworks can likewise give a stage to sustainable power source exchanging, the accomplices clarified that they turn out to be to a significant degree complex if utilized crosswise over general shoppers. In that capacity, existing frameworks are restricted to large enterprises.
The pilot, while still months away, marks the most recent endeavor by built up enterprises to use blockchain innovation in decreasing CO2 outflows in the energy sector.
As beforehand detailed by CoinDesk, innovation goliath IBM has just begun investigating the utilization of a blockchain stage in driving energy-oriented companies in China to exchange their unused CO2 emanation shares, as a significant aspect of the nation’s more extensive push to battle air contamination.
AWS Is Making Hyperledger and Ethereum Easier to Use
Amazon Web Services is a distributed computing arm of the online e-business leader. AWS has uncovered another administration for jump-starting innovative blockchain systems for the Ethereum and Hyperledger Fabric conventions.
In a blog post on Wednesday, AWS boss evangelist Jeff Barr stated that the recently accessible layouts enable customers to dispatch an Ethereum (either open or private) or Hyperledger Fabric (private) systems in a matter of minutes and with only a couple of clicks.
The post gives specific directions to set up an Ethereum layout, which underpins mining, and also an EthStats page that offers arrange measurements and an EthExplorer instrument that shows the exchanges and keen contracts went into the distributed record.
AWS is a quickly developing fragment of Amazon’s business, which saw deals increment 55 percent in 2016 and 43 percent in 2017. The division is in wild rivalry with other tech mammoths’ distributed computing arms, including Microsoft Azure, which demonstrated an early enthusiasm for presenting blockchain as a service administration when it banded together with the Ethereum startup ConsenSys in 2015.
In 2016, AWS reported that it would begin working with growing blockchain businesses, offering devoted specialized help and framework for the organizations included. Google, as per a Bloomberg report posted in March, is additionally taking a shot at a blockchain answer for its cloud business.
The organization said at the time that in money related administrations, appropriated record innovation is at the front line of any talk identified with advancement. AWS is working with monetary institutions and blockchain suppliers to goad development and encourage seamless research and development.
RBI barred banks to work with cryptocurrency exchanges
On Thursday, India’s Central Bank, RBI announced that the banks and financial institutions will no longer have any links to virtual or cryptocurrencies exchanges or other related services. RBI in its statement said that with an immediate effect, all entities regulated by RBI shall not deal or deliver services to individuals or businesses. Entities that are already providing such services shall soon quit the relationship within a specific time.
As per Financial Express, Deputy Governor of RBI, BP Kanungo, informed reporters that this specific time would be three months.
In the same statement on Thursday, RBI said that it had put together an inter-departmental group to review the issue of issuing its own digital currency.
The bank explains that having quick changes in the landscape of payments industry with contributing factors like rising of private digital tokens and soaring cost of metallic money have encouraged Central banks all around the world to analyze the option of introducing fiat digital currencies.
RBI adds, “while many central banks are still engaged in the debate, an inter-departmental group has been constituted by reserve bank to study and provide guidance on the desirability and feasibility to introduce a central bank digital currency.”
The news takes up the concern again that India was about to completely impose a ban on cryptocurrencies. However, a panel formed last year, with a motive to study potential regulations has not yet released its proposals or findings. Over the past few months, various officials have stated publicly that government does not recognize Bitcoin as a legal tender.
PocketBits, one of the cryptocurrency exchange in India has played down the significance of the step. As per a statement published on Twitter, PocketBits argues that there is no need to panic as exchanges in India have already been cut off from banking access largely, where RBI has just reiterated what it has already implemented. The exchange also said that for now, there is no ban on bitcoin as there is no official government stand on this, Its just RBI taking the stand on the technology which they are implementing themselves in terms of Digital Rupee.
RBI has previously issued several warnings and cautioned the public over cryptocurrencies. The first warning was reported in 2013. It also released a warning in the month of December stating that it has not licensed any company to work with cryptocurrencies. It also raised concerns regarding ICOs to caution consumers.
Namita Vishwanath, technology law expert, a principal associate at InduaLaw, calls it a very aggressive move. She adds “Instead of RBI taking a holistic approach and seeing how to curb potential misuse, it seems to be a rather broad-stroke approach of completely prohibiting this altogether.”
India’s crypto exchanges oppose central bank’s move
Just after RBI made the announcement that entities regulated by RBI shall stop working with companies that offer cryptocurrency or other related services, exchanges in India are fighting back against this move.
Many startups like Unocoin, Coinsecure, and Zebpay have raised an alert regarding potential disruptions to their services in case their banking providers withdraw from the market within three months, as notified. However, the statements also suggest that the industry is planning to mount some legal challenge.
Jincy Samuel, Coinsecure chief operating officer, said that various stakeholders of industry are discussing the matter with Blockchain And Cryptocurrency Committee of India and the Internet and Mobile Association of India to see if they can help in getting a hearing at Supreme Court regarding the current decision of RBI.
Samuel also acknowledged the impact of central bank’s decision across the country. She says that the move has left users with no option other than to deposit or withdraw fiat from these platforms. To move forward, users will have to switch to the cash market.
In a statement out by Unocoin, it says that all the funds are absolutely safe with them and there is no need to worry. Unocoin also adds that as of now, no banks have issued any notice to them, and when they do it, the information will be communicated.
Zebpay also announced on Twitter that the sudden disruption in the banking services could affect their ability to service deposits or withdrawals. But at the same time, it also added that the customer’s assets and funds will stay secured and they are finding other options.
Ajeet Khurana, Zebpay’s chief executive tweeted “No way I am stopping. We will continue to do what is best for our customers, and what is best for our country. Am studying the current situation and will react shortly. [A]nd we will emerge stronger.”
Arizona’s cryptocurrency tax payments bill is being revamped
According to one of its sponsors, Arizona’s crypto tax payments bill is being revamped with an ambition to put it forward for a vote in the upcoming weeks.
Jeff Weninger, Arizona representative in an interview told Coindesk that a comprehensive work is being done on the measure that will allow residents to make payments of their tax liabilities with cryptocurrencies.
The measure was taken forward back in February by the Arizona Senate, however, the public records suggested that the matter went lingering in the House of Representatives unless a committee recommended its passage.
Weninger said, “We’re still working on moving it.” He also told that he has been working closely with Senator Warren Petersen who drafted measure on some changes. The key recommendation is to make the language more agnostic about which cryptos can be used with “bitcoin” term being slashed out of the bill.
These changes have been made in the bill to make it more agnostic about name specific digital currencies. However, it is up to Revenue Department to fix that.
The revamped bill will also let the tax officials decide whether to set up their own method to exchange crypto to U.S. dollar or let the startups compete and convert it and send U.S. dollars. He also mentioned that the changes will be implemented in a week or two. Also, they ’ve been working on it dedicatedly to make all the members understand it and be comfortable.
Arizona has established itself as a positive environment for startups working on this technology owing to the legislation passed till date. The first of it was signed last year into the law and recognized blockchain signatures and smart contracts as legally valid.
Considering all the factors, it shows that Arizona is welcoming the new-age entrepreneurs and this new technology quite well.
In the same interview with Coindesk, he lastly said: “We hope to lead on this and other technologies in future.”
Ontario Regulator looking into the activities of Crypto Trading Platforms
The Ontario Security Commission is gathering information about the cryptocurrency trading platforms that are operating in the province.
OSC spokeswoman, Kristen Rose on Friday said that the agency has received many complaints about platforms selling cryptocurrencies that may qualify as securities. “These platforms and any businesses that are coins that are security to trade them, maybe offside security law,” she said.
Under Ontario law, exchanges must apply for recognition by the commission. The application made by the firms must describe the aspects of their business such as operations, corporate governance, access requirements, financial viability, and fees.
None of the exchanges have been legally recognized in the province, nor any of them has been granted an exemption from the regulation.
However, the commission is not following a full-bore investigation but is only gathering information about how these platforms are working.
The OSC has freshly presented a document highlighting the priorities of this fiscal year with a prominent focus on cryptocurrencies. The main motive behind this move is to provide protection to customers while also promoting innovation and capital formation.
OSC said ICOs in particular “present significant investor protection issues.” Ontario’s viewpoint towards ICOs is not necessarily unfavorable, however, the OSC approved TokenFunder’s sale in October.
Japan’s financial regulator suspends two crypto-exchanges
Japanese regulator has ordered two cryptocurrency exchanges to freeze their operations due to insufficient KYC procedures for two months.
This order has come to an effect immediately where Eternal Link and FSHO will face suspension until June 5 and June 7, respectively as per issued by the Financial Services Agency on Friday.
However, it is months long inquiry that these exchanges had not properly required consumers to give information like purposes of trade. They also did not follow procedures around reporting the suspicious transactions to FSA.
The agency said that failing to put these anti-laundering efforts is not in conformity with the Act on Prevention of Transfer of Criminal Proceedings.
The order on Eternal Link indicates that the firm has violated Japan’s laws by using customer deposits to pay company expenses, although temporarily.
FSA also found that Eternal Link, FSHO, and Last Roots have made insufficient improvements to their internal safety measures which protect user information against potential threats.
Bit Station has also been ordered to halt its operations, while five others were ordered to report back to FSA regarding their business improvements measures.
After $500 million worth of NEM tokens got stolen from the Coincheck exchange, FSA is stepping up its efforts to keep a check on domestic cryptocurrency exchanges to inspect loopholes in their business operations.
During an interview with CoinDesk Korea, Mayor Park Won-soon announced the initiation to create a cryptocurrency for the South Korean city of Seoul. The city will soon be developing its own cryptocurrency – the “S-Coin.” The cryptocurrency is set to play a significant role in city-funded social benefits programs- according to Park Won-soon. Park also shared his intentions to encourage the development of industrial clusters and potent startups that will function or promote the use of blockchain technology.
Park Won-soon stated, “As Seoul is the world’s leading city in the field of information and communications, including the 4th industrial revolution, I think it should naturally study new technologies such as block chains.”
Similar to Estonia, which is endeavoring to utilize blockchain innovation to all legislature regulatory procedures, Park believes that the blockchain can be connected to every bureaucratic organization in Seoul, for example, the general population transport framework worked by Seoul City and the arrangement of youth allowance. Besides, Park demonstrated that the S-Coin could be utilized as a transaction technique for city-financed welfare programs for open representatives, youthful occupation searchers, and natives helping the earth by sparing power supply, gas, and water.
Specifically, Park focused on Seoul’s readiness to issue money. He stated that to influence an S-coin, we have to develop institutional and lawful help, such as local laws. He also said that he would attempt to change different rules and controls of the central government. He gave eco-mileage that gives monetary advantages to subjects sparing power, water, and gas, youth recompense to help youngsters who are looking for occupations, open representative welfare focuses. The organization is additionally thinking about plans to apply blockchains to its frameworks.
This is required to be incorporated into the blockchain end-all strategy of Seoul, which will be completed in April. In November, a year ago, the Seoul Metropolitan Government (Samsung SDS) has been entrusted with building up a data technique design (ISP) for the Seoul City blockchain-based local development. This is the initial phase in setting up a guide for the presentation of a blockchain among local government and open foundations.
At the point when a city chooses to issue its own local currency, there is a considerable measure of inquiries holding up to be replied. On account of S-Coin, the money will be utilized for different ideas all through Seoul. As a matter of first importance, the new coin will be used to pay for public transportation. It is additionally an installment strategy for city-subsidized projects and environmental projects.
This attracts a few likenesses to how Bitcoin is functional as a part of Zug’s economy. All things considered, S-Coin will be controlled by the city chamber of Seoul, as opposed to being decentralized cryptographic money. Specific technological details of S-Coin stay hard to get at the current moment. It stays hazy which blockchain will be utilized to issue this money or how high the aggregate supply will be.
Possible Effects on Bitcoin
Given South Korea’s significance in the realm of Bitcoin and cryptographic forms of money, the dispatch of S-Coin is somewhat interesting. These monetary standards won’t contend with each other given the current aspects. S-Coin is constrained in usefulness to Seoul, while Bitcoin utilize traverses South Korea completely. The two types of significant worth can without much of a stretch exist together in the capital city.
The majority of this further affirms South Korea is getting ready for real digital currency and blockchain direction. With the administration inclining toward presenting another tax collection system for these financial standards, Bitcoin and altcoins keep on gaining authenticity. These new tax assessment rules will become effective in June of 2018.
It isn’t the first run through a city chooses to issue its own local cryptocurrency. In the UK, the town of Hull as of late propelled HullCoin. It appears this idea is catching public interest, which isn’t really a terrible thing. Activities like these assistance individuals get more familiar with the concept of digital monetary forms. Over the long haul, it might just make ready for more prominent worldwide digital currency acceptance.
Regional sources report S-Coin will be presented sooner or later in April of 2018. The up and coming dispatch of this money will without a doubt draw in a considerable measure of consideration. In conjunction with S-Coin, the city of Seoul additionally needs to set up a fund to help nearby blockchain ventures. This expanded spotlight on more up to date advancements has all the earmarks of being of impressive enthusiasm to chairman Won-soon too.
Park likewise said he wants to cultivate a blockchain environment. He said that he met blockchain organizations, and thinks that their organizations are not seeing the light due to several different directions. He also added that all things considered, innovation is as cutting edge as any other nation. “We are planning to create clusters where the start-ups we want to build up, and how they can develop the technology and spread the funds to the world,” he said.
Concerning government’s solid administrative strategy on ciphered cash, Park stated, “The last time the Ministry of Justice announced regulatory measures, it was tremendous resistance, and the government seemed to think deeply about it.” Park also added later, ” First, it is the local government’s task to create cases and models. If the Seoul government releases certain regulations, it will be able to make the model more freely.”
Park, a standout amongst the most compelling government officials in Korea, who is most inspired by the blockbuster innovation, will challenge out of the blue among the Seoul showcase in the elections decisions hung on 13th June.
Twitter and Mailchimp ban ads on cryptocurrencies and ICOs
After Facebook and Google, two more online platforms including Twitter and Mailchimp have banned the ads for cryptocurrencies and ICOs. On Monday, Twitter announced that it would remove such ads, unless, listed on a major stock market, placed by a public company. Jack Dorsey, founder of Twitter is a cryptocurrency bull, but the move comes keeping in mind, the scam accounts and bots in social media sites recognized in the past.
A few days later, Mailchimp, the email distribution service, said that it would also block marketing campaigns relating to ICOs and crypto coins. Mailchimp explains that these campaigns are often associated with frauds, scams, phishing and misleading business practices.
Rising closures of cryptocurrency startups recorded
This week is marked by several new closures of cryptocurrency startups, indicating the uncertain nature of the rapidly evolving market. Firstly, Litepay, a merchant processor for litecoin payments, similar to BitPay, has ceased its operations. Litecoin Foundation apologizes for its hype, calling it “less than transparent nature”.
In Japan, two crypto exchanges are shut down over growing regulatory scrutiny. Mr. Exchange, being one of them, said that it had received an order late in January to beef up its internal protocols relating to the attack on Coincheck.
Similarly, Coinprism, a wallet service for colored coins, decided to shut down its operations, four years after its launching. Founder & CEO of Coinprism, Flavien Charlon, gave many reasons for its pack up, including rising of ethereum as the referred rails for token insurance; congestion on the bitcoin network; limitations of blockchain technology and prospects of heavier regulation.
Thailand moves a step closer to cryptocurrency taxation
Thailand is soon going to enact taxes on cryptocurrencies. As per a report by Nikkei Asian Review, Thai Revenue Department is expected to collect 7% VAT along with 15% withholding tax from investors trading cryptos in the country.
To regulate cryptocurrencies in Thailand, two decree drafts were passed previously by the Cabinet of Thailand. One of the two decree drafts is an effort to avoid tax avoidance and money laundering.
As per Bangkok Post, if trading through cryptocurrency exchange, retail investors may be eligible to waive VAT after the law comes into effect, they will face liability even if they have no capital gains. The report also suggested that the draft law is currently pending by the Royal Gazette, later which will be formally enacted.
AirAsia launching a cryptocurrency-based reward program
Tony Fernandes, AirAsia chief executive, has notified Nikkei Asian Review that the company is going to convert its frequent-flyer rewards program to a cryptocurrency platform “Bitcoin”. The move comes a part of company’s aim to proceed towards a cashless system and improve airline’s digital services.
Based on the platform, the customers will be able to buy seats, in-flight meals, seat upgrades, among various other services. He also told that the company would launch an initial coin offering (ICO). However, he did not provide any firm timeline or any information whether the company is planning to develop its own blockchain.
IBM taking cryptocurrency seriously
IBM has stepped forward to take cryptocurrency seriously. IBM has started to talk about how it can make use of cryptocurrencies in live applications and early-live prototypes. This has given a new reason for investors to consider cryptos.
With $140 billion, IBM has revealed CoinDesk about its meeting with executives of commodities trading platforms, large corporations and central bank to explore opportunities with cryptocurrencies to save money and generate higher revenue. The company has also hired a new head of blockchain development, Jesse Lund, to develop cryptocurrency strategy.