Cryptocurrency is Property in Russia, Justice Minister Confirms

Cryptocurrency is Property in Russia, Justice Minister Confirms

Cryptocurrency is Property in Russia, Justice Minister Confirms

The Russian Ministry of Justice has taken side in what looks like a lively debate about the status of cryptocurrencies that are still unregulated in the country. A bankruptcy case involving a modest amount of bitcoin has sparked discussions in Russian legal circles. Some say a crypto is nothing more than “a set of characters.” Others, including the justice minister, are categorical – cryptocurrency can’t be anything else but property.   

Also read: Cryptocurrencies to be Called “Digital Money” in Russia, Tokens – “Digital Rights”

Russian Justice Ministry Takes Side in a Legal Argument

Cryptocurrency falls under the legal category of “other property,” Russia’s Justice Minister Alexander Konovalov told reporters this week. With two draft laws on the matter still pending in the State Duma, he also noted that digital coins should not be considered electronic money, at least on this stage.

A bankruptcy case involving some bitcoin holdings has recently stirred the Russian legal community, which was challenged to provide a provisional answer to the question about the status of cryptocurrencies. In the absence of firm definitions in the current legislation, this question split Russian legal experts in two camps. On one side are those who think that cryptocurrencies have real value, on the other – their colleagues who believe they don’t, if the law doesn’t explicitly say so.

Cryptocurrency is Property in Russia, Justice Minister ConfirmsAccording to Konovalov, his department has adopted a “consolidated opinion” on the legal nature of cryptocurrencies and it supports the view that they should be defined as property. “If digital money is not property, its theft would not be considered criminal offense because there would be no object of the crime,” he warned.

“If cryptocurrencies are to develop, additional regulation will be necessary. The main point is to ensure that all this does not grow into financial pyramids,” Konovalov added, quoted by Prime. He is convinced that Russia should introduce rigid crypto regulations but also recognizes that the phenomenon is itself a “manifestation of the people’s desire to escape from total dependence.”

The Question Will Be Answered by the Duma Soon

Minister Konovalov’s comments added to the ongoing debate among experts and officials in Moscow on whether cryptocurrency can be considered a property in accordance with the current Russian legislation. The discussions were prompted by a bankruptcy filing from October last year. During the arbitrage proceedings, the debtor protested the trustee’s request to include his crypto funds, less than 0.2 bitcoin (BTC), in his bankruptcy estate.

According to his legal representative, such move is impossible as the term “cryptocurrency” is not mentioned in Russia’s Civil Code at all. The Moscow Arbitration Court accepted this position. “A conclusion can be drawn that cryptocurrency is a certain set of symbols/characters contained in an information system. It cannot be an object of the civil rights,” it said.

Cryptocurrency is Property in Russia, Justice Minister Confirms

But then, earlier in May, an arbitration court of appeals overturned this ruling recognizing cryptocurrency as a valuable property, as reported. On Thursday, the Ninth Arbitration Court of Appeals published its decision on the case. According to the document quoted by Interfax, cryptocurrency cannot be regarded as anything else but property. And, since the current civil law does not contain the notion “other property”, the widest possible interpretation of property is permissible, the court explained.

The question about the status of cryptocurrencies in the Russian Federation will be answered very soon. Two drafts have been filed in the Duma, the lower house of Russia’s parliament, and the one that focuses on legalizing initial coin offerings will have its first reading on Tuesday, May 22. The second bill is expected to amend the country’s Civil Code in order to regulate crypto payments. According to comments made by the Russian Prime Minister Dmitry Medvedev this week, the new legislation will refer to cryptos and tokens as “digital money” and “digital rights”, respectively. Whether this means that bitcoin will be accepted both as currency and property remains to be seen.

Do you expect Russia to eventually accept and legalize decentralized cryptocurrencies? Share your thoughts on the subject in the comments section below.    

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A Look at the Credit Card Shaped Hardware Device Called ‘Coolwallet’

A Look at the Credit Card Shaped Hardware Device Called ‘Coolwallet’

A Look at the Credit Card Shaped Hardware Device Called 'Coolwallet'

Cryptocurrency enthusiasts take security and storage seriously, and there are a bunch of different hardware solutions out there. One startup has released a different kind of digital asset hardware wallet that is the same size and shape as a credit card. Due to the design of the new ‘Coolwallet S,’ the wallet can be hidden very easily alongside the option of being carried effortlessly in your back pocket.

Also read: Bitcoin in Brief Saturday: Warren Warned By Billboards, Coinbase Tempted by Banking

The Credit Card Size and Shaped Coolwallet S Cryptocurrency Hardware Wallet

Coolbitx is a Taiwanese financial-tech company founded by Michael Ou in 2014 that creates digital asset hardware wallets as well as smart contract development platforms. Back then the wallet creators started an Indiegogo campaign featuring the credit card shaped hardware wallet that allowed the secure storage of bitcoin private keys. During the Indiegogo campaign, the team raised $21,686 USD through 184 backers, 108 percent of their goal. Moreover, the startup Coolbitx is backed by firms such as Bitmain Technologies, SBI Holdings, Kyber Capital, Midana Capital, and more.

A Look at the Credit Card Shaped Hardware Device Called 'Coolwallet'
The Coolwallet S specs.

Basically, the Coolwallet S is the size of a traditional credit card at roughly 85.60 × 53.98 mm with rounded corners. It has a display on the upper left side which shows the wallet’s data like sending and balances. The creators of the Coolwallet S device claim that cryptocurrencies are held in an isolated offline environment and the card’s tactile button ensures an owner’s two-factor authentication process. The Coolwallet S holds five popular digital assets such as Ethereum (ETH), Bitcoin Core (BTC), Bitcoin Cash (BCH), Litecoin (LTC), Ripple (XRP), and an assortment of ERC-20 tokens.

A Look at the Credit Card Shaped Hardware Device Called 'Coolwallet'
What you get for $189 USD.

Coolwallet is NFC & Bluetooth Compatible and Also Works With Mobile Phones

The wallet developers have made the card flexible, waterproof, and fire resistant as well. The Coolwallet S syncs data via encrypted Bluetooth technology and its NFC (Near Field Communication) charger powers the device with its own power dock. Moreover, the new Coolwallet S can be tethered to a mobile application for Android and iOS devices.

“Keep it private, keep it safe, keep it Cool,” says the Coolbitx developers.

Have total, end-to-end control over your cryptocurrency with an EAL5+ certified Secure Element microchip on a tamper-proof physical device.

The Coolwallet S is a bit more expensive compared to other hardware wallets on the market like Keepkey, Digital Bitbox, Trezor, and Ledger. The Coolwallet S costs $189 but users can purchase a ‘Duo’ package for $299. One thing we noticed when proceeding to the checkout is the wallet has to be purchased with a credit card, as there was no option to pay for this product with a cryptocurrency. This post will be followed up with a step-by-step review of the Coolwallet S as soon as our device arrives.

What do you think about the Coolwallet S hardware wallet? Let us know what you think about this device in the comments below.

Disclaimer: does not endorse this product/service. Readers should do their own due diligence before taking any actions related to the mentioned company or any of its affiliates or services. is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Images via the website and Pixabay. 

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Crypto Floating Island Project Closer to Realization

Crypto Floating Island Project Closer to Realization

Crypto Floating Island Project Closer to Realization

Blue Frontiers has signed a much-publicized memorandum of understanding with French Polynesia. The Floating Island Project is exactly as it reads, only it’s to be an independent government complete with its own cryptocurrency. An idea long thought to be a crazy dream of libertarians is now incredibly close to realization.

Also read: Alec Baldwin’s Lambo Movie Backed by Crypto Tech

Crypto Floating Island Project Nearer to a Reality

“A core structural feature of current models of government is centralization,” begins the pitch for an initial coin offering (ICO) pre-sale of Varyon from Blue Frontiers. “Too much centralized authority leads to inefficient bureaucracies and representatives disconnected from the people they are meant to serve. Given a suitable technological solution, governments are ripe for decentralization. That technological solution is seasteading.”

The book Seasteading: How Floating Nations Will Restore the Environment, Enrich the Poor, Cure the Sick, and Liberate Humanity from Politicians (Free Press, 2017) caused an immediate media sensation. Written by Joe Quirk and Patri Friedman, it’s the nonfiction account of what seems at the outset to be a sci-fi idea. Dutifully, legacy outlets treated it that way, at times dismissing seasteading as impractical, the stuff of fantasy.

Crypto Floating Island Project Closer to Realization

“Varyon (VAR),” via the Ethereum chain (1 ETH = 14,750 VAR), ERC-20 token, “is a general purpose payment token for the exchange of goods and services in the Blue Frontiers ecosystem, other ecosystems, and between token holders. Blue Frontiers is planning to use the proceeds of the sale to expand its ecosystem and create Seazones and seasteads, and will only accept Varyon (VAR) for its products and services,” Blue Frontiers claims.

A completely unrelated business proposition put seasteading into perspective. Anglo-Dutch oil and gas concern Shell launched its quarter-century at sea project, Prelude. Assembled in Samsung’s Heavy Industries Geoje shipyard, South Korea, Prelude is Shell’s gamble at taking a refinery to natural gas deposits previously imagined out of reach. Longer than the Empire State Building is tall, Prelude’s hull is among the largest ever built. The enormous project is an inspiring construct, stretching four continents and thousands of people.

Crypto Floating Island Project Closer to Realization

No Longer Just a Dream

Prelude is a floating city, and not in the literary license sense. It doesn’t take long to sympathize with Mr. Quirk’s and Mr. Friedman’s vision, even if it’s covered in petroleum-seeking profits at the moment. A floating island, then, isn’t the wacky concept one might be forgiven for at first highly doubting. Combine that real-world use case with modern cruise ships, perhaps linking them together, and it also isn’t terribly hard to consider a country at sea.

That’s the idea. Members of the Seasteading Institute, which can count among its members luminaries such as Peter Thiel, created a company bent on making all that theory turn real, Blue Frontiers. Early last year, in fact, the group inked a deal with French Polynesia to effectively use wet territory under its dominion in an attempt to bring to life the Floating Island Project.

Crypto Floating Island Project Closer to Realization

“Blue Frontiers plans to prototype the first seastead with funds raised from the Varyon (VAR) Crowdsale, and to fund additional seasteads through sales,” the project continues. “The Varyon (VAR) Blue Frontiers holds for seastead and Seazone Construction, Development, and Administration will be used only as needed, in order to create seasteads and Seazones and to strengthen the ecosystem of products and services available to Varyon (VAR) holders.”

The distribution of VAR follows pretty standard ICO procedures: “The amount of Varyon (VAR) allotted to seastead/Seazone Construction, Development, Administration is inversely correlated with the amount purchased in the public sale. That is, the more Varyon (VAR) sold in the public sale, the less Varyon (VAR) held for seastead/Seazone Construction, Development, Administration,” Blue Frontiers details. Thus, up to 28% is available during public sale; up to 8% presale; up to 6% for seed funders; up to 15% for the team; and the remainder goes to the project itself, up to 72%.”

“Seasteading brings decentralization beyond the digital world of bits and into the world of atoms by providing modular, floating structures – seasteads – on which the evolution of new societies and forms of governance can occur,” Blue Frontiers asserts. “Promising solutions can branch off at any time by physically separating to create new seasteads – enabling a high level of evolvability and quick rate of adaptation. Mimicking nature’s time-tested method of variation and selection, the process of decentralizing governance through seasteading will spark the creation and evolution of new advancements in civilization.”

Did you think projects like seasteading will eventually get off the ground? Let us know what you think of this subject in the comments below.

Images via Pixabay, Seasteading Institute, Blue Frontiers

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Japanese Crypto Exchange Continues Global Expansion – Now in Five Countries

Japanese Crypto Exchange Continues Global Expansion – Now in Five Countries

Japanese Crypto Exchange Continues Global Expansion - Now in 5 Countries

A Japanese government-approved cryptocurrency exchange has resumed expanding overseas. Already operating in five countries with a plan to launch in more in the near future, the exchange aims to construct a global network of crypto transactions.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

Building Global Network

Japanese Crypto Exchange Continues Global Expansion - Now in 5 CountriesBitpoint Japan was among the first crypto exchanges to be fully licensed by the Japanese Financial Services Agency (FSA). It is a subsidiary of Remixpoint (3825.T), a listed company on the Tokyo Stock Exchange.

Bitpoint has started a new round of expansion overseas, after entering a few countries last year. The company announced on Thursday that its Malaysian exchange has begun operations.

The Kuala Lumpur-based Bitpoint Malaysia opened its doors on May 17, offering spot trading and leverage trading. The fee for spot trading is 0.5% while leverage trading carries no fee. Deposits and withdrawals in Malaysian Ringgit are free during the grand opening. The exchange wrote:

We offer leverage of 2, 5, 10 and 25 times.

Five cryptocurrencies are supported: BTC, ETH, BCH, LTC, and XRP. Bitpoint Japan says it “will support Bitpoint Malaysia as a system and liquidity provider.”

Global Operations

Japanese Crypto Exchange Continues Global Expansion - Now in 5 CountriesIn addition to Malaysia and Japan, Bitpoint is also operating in South Korea, Taiwan, and Hong Kong. The exchange also opened an office in China in July last year before the Chinese government shut down all crypto exchanges in the country.

In addition, the exchange is reportedly preparing to enter Singapore, Thailand, and other Asian markets in the near future. Bitpoint detailed:

By continuing to provide overseas exchanges using the Bitpoint system in the future, we will continue to realize the construction of a global network of virtual currency transactions.

Tougher Rules and Competition in Japan

Since the hack of Coincheck, one of the most popular crypto exchanges in Japan, the FSA has tightened its cryptocurrency oversight. The country still has 16 fully-licensed crypto exchanges, which have recently formed an association to focus on self-regulation in an effort to rebuild public trust in the crypto industry.

However, out of the 16 “deemed dealers,” which are those allowed to operate while their applications are being reviewed by the FSA, only 8 remain. The agency recently revealed that the other 8 have indicated that they are withdrawing their applications.

Meanwhile, the agency confirmed that over 100 companies are seeking to enter the space, including Yahoo! Japan and Line Corp, which operates the popular chat app Line.

What do you think of Bitpoint’s global expansion plans? Let us know in the comments section below.

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China Has Found 421 Fake Cryptocurrencies

China Has Found 421 Fake Cryptocurrencies

China Has Found 421 Fake Cryptocurrencies

A Chinese government-backed industry organization has published a report on fake cryptocurrencies. As of April, its monitoring platform has found 421 fake cryptocurrencies, 60% of which are deployed overseas. The Committee has also outlined major red flags of these cryptocurrencies.

Also read: Yahoo! Japan Confirms Entrance Into the Crypto Space

421 Fake Cryptocurrencies

China Has Found 421 Fake CryptocurrenciesThe National Committee of Experts on the Internet Financial Security Technology (IFCERT), a Chinese government-backed industry organization, published the results of its analysis on fake cryptocurrencies on Friday.

China Has Found 421 Fake CryptocurrenciesCiting that “In recent years, virtual currencies represented by bitcoin, litecoin, ethereum, etc. have received continuous attention,” IFCERT pointed out that “some criminals are engaged in financial fraud or pyramid schemes under the cover of virtual currency.” The Committee added that fake cryptocurrencies frequently appear, “causing investors to suffer major losses.”

IFCERT’s National Internet Financial Risk Analysis Technology Platform continuously monitors fake cryptos, the Committee detailed, adding (as translated by 8btc):

The report shows that as of April 2018, IFCERT has detected 421 fake cryptocurrencies under continuous monitoring, of which, more than 60% fake coins’ servers are deployed outside the country. In this context, it is hard to find and track the platforms of such fake cryptocurrencies.

The Red Flags

China Has Found 421 Fake CryptocurrenciesThe Committee outlined some major red flags of these fake cryptocurrencies. Firstly, they adopt “pyramid-based” business models, claiming that their cryptocurrencies will generate high returns.

Secondly, they have no real code, IFCERT described, noting that they either do not have a blockchain or cannot generate blocks for one.

Thirdly, they will not be traded on legitimate cryptocurrency exchanges, “so they often trade on over-the-counter or proprietary exchanges,” the report detailed, adding that:

There is a phenomenon that prices [on these platforms] are highly controlled by institutions or individuals, which tends to cause the illusion of rapid price increase. However, users often cannot conduct transactions or withdraw cash.

IFCERT emphasized that fake cryptocurrencies have no value and are illegal, asserting that “Many of these platforms do not have business premises and business information, and servers are often deployed overseas,” so it will be difficult to recoup any losses for victims.

271 Fake ICOs

On Thursday, the Wall Street Journal independently published its finding after a review of documents produced for 1,450 initial coin offerings (ICOs). The publication “has found 271 with red flags that include plagiarized investor documents, promises of guaranteed returns and missing or fake executive teams.”

Investors have poured more than $1 billion into these 271 ICOs, the publication detailed, adding that “some of the firms are still raising funds, while others have shut down. Investors have so far claimed losses of up to $273 million in these projects, according to lawsuits and regulatory actions.”

Do you think there are many more fake cryptocurrencies? Let us know in the comments section below.

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Japanese Exchange Coincheck Eyes America for Expansion

Japanese Exchange Coincheck Eyes America for Expansion

Japanese Exchange Coincheck Eyes America for Expansion         

Coincheck, the Japanese crypto trading platform that found new owners after it was hacked earlier this year, is now planning to offer services on the US market. The exchange expects to be licensed in Japan next month, according to the chief executive of Monex, the online brokerage which bought the troubled company last month.    

Also read: Coincheck Resumes Monero Withdrawals and Sales

Coincheck’s US Plans – Part of the Comeback

Japanese Exchange Coincheck Eyes America for ExpansionRecognizing the need to “study carefully” the legal framework for cryptocurrencies in the US, Japanese exchange Coincheck is planning to expand its operations and its customer base in America, building on top of over 2 million accounts in Japan. No timeframe has been specified yet, but the move is under consideration by the platform’s new management. Its operator, Coin Check Co., became a wholly owned subsidiary of Monex Group in April after losing some ¥58 billion worth of NEM (~$550 million USD at the time) in a hacker attack in January – one of the biggest heists in crypto history.

“The legal framework for cryptocurrency in the US is somehow wandering right now – money transfer, commodity, security. And, the rules are different state by state. So, we have to study this carefully. But the short answer is ‘yes’,” Monex CEO Oki Matsumoto told Bloomberg in an interview about Coincheck’s future intentions. He also revealed that the exchange, which spent a lot of funds and efforts to improve security and restore confidence, is expecting to receive a license in Japan next month. Matsumoto’s comments indicated that bringing the trading platform to the US is also part of the plans for the comeback.

Japanese Exchange Coincheck Eyes America for Expansion

For many observers, the purchase of the notoriously hacked cryptocurrency exchange for $34 million might have looked like a risky investment, but the takeover has so far proven to be a positive move for Monex. Its shares have almost doubled in price since the news of the acquisition broke in April. Doing crypto business in the US may not seem like a great idea either, given that the company comes from Japan, a country known for its much friendlier crypto atmosphere.

A Different Perspective of the West

Matsumoto, however, has a different reading of the situation as he sees favorable conditions forming in the West, including lower taxes and growing interest from institutional money managers. France was mentioned in the interview in the light of last month’s government decision to lower the crypto capital gains tax rate by more than half – to 19 percent, compared to Japan’s 55 percent.

Japanese Exchange Coincheck Eyes America for ExpansionAnother sign of the warming climate in Paris was the Finance Minister Bruno Le Maire’s statement this week that he was wrong about cryptocurrencies before. “I was a neophyte a year ago, but now I’m passionate. It took me a year, so let’s […] make France the first place for blockchain and crypto innovation in the EU,” Le Maire was quoted as saying at a meeting with entrepreneurs and representatives of the French startup Blockchain Partner. According to, he also assured the members of the French crypto community of his “total support.”

The Japanese government does not plan any tax cuts for crypto-related incomes and gains and that, according to Oki Matsumoto, means that cryptocurrency will remain a “plaything for speculators.” Despite legalizing crypto trade last year, Tokyo has yet to determine the status of crypto-related financial products such as futures contracts, which will require some amendments to the Japanese securities law.

“Japan may seem like it’s one step ahead in crypto, but in terms of deciding what’s a security or a token, and in terms of attracting institutional investors, the US and Europe are moving ahead,” the chief executive of Monex said. In his opinion, the classification of cryptocurrencies in the United States will create regulatory clarity which is necessary to draw more investors. Matsumoto believes that the decisions US regulators take will influence the role of cryptocurrencies, in general, and have a huge impact on the crypto policies in his country, in particular.

What are your expectations for the future of crypto industries in both Japan and the US? Share your thoughts in the comments section below.  

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Inside the Competitive World of OTC Bitcoin Trading

Inside the Competitive World of OTC Bitcoin Trading

Inside the Murky World of OTC Bitcoin Trading

If you work in cryptocurrency and are a member of Linkedin, you’re probably familiar with OTC bitcoin brokers. They’ll message you, out of the blue, asking if you know any private sellers, and will offer to set up a deal for your mutual benefit. The majority of these men (for they are always men) are genuine in their intentions. This does not disguise the fact, though, that BTC brokers are little more than sharks circling the same prey.

Also read: Research Paper Finds Transaction Patterns Can Degrade Zcash Privacy

Brokers Outnumber Buyers and Sellers 100:1

Anyone can become a bitcoin broker: change your Linkedin title to “OTC Bitcoin Broker” and you’ve done it. Brokerage is a job that, like most cryptocurrency roles, outside of development, requires no formal qualifications. Just as anyone can call themselves an ICO advisor, anyone can assume the mantle of bitcoin broker, consigning them to start spamming Linkedin users for buyers and highly coveted sellers.

To understand the viral spread of brokers, it’s necessary to understand the conditions that led to large OTC sellers coming about. Back in the day, it was possible to acquire a lot of bitcoin for very little money. A lot of people mined it; some made it from trading shitcoins; and a few simply bought a bunch of BTC and then had the presence of mind to hodl, through thick and thin, for years.

Inside the Murky World of OTC Bitcoin Trading

Most brokers will take on anything from 500 BTC upwards as an OTC deal, often operating on behalf of family funds seeking to acquire bitcoin in bulk. But what brokers are really chasing is the big one – deals of 10,000 BTC or more, in which a brokerage commission of 3% is worth millions of dollars. The number of bitcoin addresses containing between 10k and 100k BTC sits at little more than 100, however, and while some sellers have their coins distributed across multiple wallets, bona fide whales looking to sell are rare. Because the rewards for finding one are so great, a swarm of brokers, each chasing “the big one”, has proliferated.

How an OTC Deal Works

Inside the Competitive World of OTC Bitcoin TradingSellers want to sell OTC to avoid the sort of slippage that occurs when unloading large amounts of BTC on an exchange. Whales also value their privacy, and while they are still required to undergo KYC to complete an OTC deal, their identity is only going to be shared with the broker, their attorney, and the escrow service. Normally, even the buyer won’t know the identity of the person they are buying the coins from. The seller provides “proof of satoshi” by moving a fraction of a bitcoin from the wallet they control, the buyer provides proof of funds in the form of a bank certification of deposit or credit and a non-disclosure agreement (NDA) and a letter of intent (LOI) are signed. The process usually works as follows:

  • Attorney for the buyer prepares LOI detailing terms including BTC purchase amount, commission, net discount and other details
  • Proof of funds is provided within a specific timeframe of signing the LOI. A screenshot is not accepted: cryptographically provided proof of coin, sent via the blockchain, is required
  • Master Fee Protection Agreement as well as Draft Purchase Agreement and Escrow Agreement may then be circulated and signed by all parties
  • Money is placed in escrow, escrow verifies receipt of funds and BTC is sent to buyer’s wallet
  • Transfer may be done in full or in tranches depending on the agreement

Given the desire of buyer and seller to preserve their privacy, and the need for each party to be connected in the first place, brokers play a vital role. But due to the lucrative prize at stake, it’s a job that attracts a lot of chancers – and a lot of Linkedin requests, much to the chagrin of other cryptocurrency users.

Have you been contacted by bitcoin brokers and do you think they’re a nuisance or an essential link in the OTC chain? Let us know in the comments section below.

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Colorado Proposal Aims to Allow Cryptocurrency Donations for Campaigns

Colorado Proposal Aims to Allow Cryptocurrency Donations for Campaigns

Colorado Proposal Aims to Allow Cryptocurrency Donations for Campaigns

The state of Colorado is considering giving political candidates the ability to raise funds using cryptocurrencies. This week the Secretary of State, Wayne Williams, presented the proposed guidelines and officials are looking for commentary from Colorado residents.

Also read: “Stablecoin” Trueusd Pumps After Binance Listing

Colorado Secretary of State May Allow Politicians to Accept Cryptocurrencies for Campaigns

Colorado Proposal Aims to Allow Cryptocurrency Donations for CampaignsColorado is a state that is well known for testing new laws and guidelines like allowing recreational cannabis throughout the state. This week politicians from the Rocky Mountain state are considering allowing political candidates to accept bitcoin and other forms of digital assets. Secretary of State Wayne Williams proposed the new rules in a draft submitted on May 16, 2018. The proposal states:  

A committee may accept contributions in cryptocurrency, up to the acceptable limit for a cash or coin contribution. The amount of the contribution is the value of the cryptocurrency at the time of the contribution. The committee must report any gain or loss after the contribution as other income or receipts.

Crypto-Campaign Acceptance: An Accounting Nightmare

In an interview with the Denver Post Suzanne Staiert, Colorado’s deputy secretary of state explains the proposal going through is likely to happen. “The FEC is doing it now,” Staiert details. “So we are just going along for the ride.”

However, the FEC advisory’s guidelines are making the accounting process more difficult explains the deputy. The FEC advisory laid out how the organization thinks committees should deal with the accounting aspects of accepting cryptocurrencies. “It’s going to be an accounting problem, potentially, for campaigns who want to use it,” Staiert further noted.

Colorado Proposal Aims to Allow Cryptocurrency Donations for Campaigns
Back in 2014, U.S. Rep. Jared Polis, from Boulder Colorado accepted $2,000 worth of BTC for his campaign. Polis thinks politicians who hold cryptocurrencies should also declare their holdings.

U.S. Politicians Have Already Accepted Cryptocurrencies in the Past for Campaigns

A Colorado state official already has accepted donations in Bitcoin Core (BTC) back in 2014 as U.S. Rep. Jared Polis, D-Boulder accepted $2,000 worth of BTC that year. Other bureaucrats have accepted BTC in the past for political campaigns as well such as Rand Paul and Gary Johnson. Further, recently reported on the largest BTC donation given to a candidate so far this past December. The Republican U.S. Senate candidate Austin Peterson accepted roughly 0.284 BTC which at the time was worth over $4,500 USD.

The Colorado Secretary of State is asking state residents to comment on this issue before officials come to a decision on the matter.

What do you think about the state of Colorado allowing politicians to accept cryptocurrencies for political campaigns? Let us know your thoughts on this subject in the comments below.

Images via Shutterstock, Pixabay, and Wiki Commons.

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