Bitcoin dealer charged with money laundering

"BITCOIN DEALERS charged with money laundering" Yes, apparently there is such a thing. Made my day.

submitted by mastermind1228 to Bitcoin [link] [comments]

Bitcoin dealers charged with money laundering

submitted by AllanAV to DailyTechNewsShow [link] [comments]

Bitcoin Dealer Charged with International Money Laundering

Bitcoin Dealer Charged with International Money Laundering submitted by MundoMoedas to Cryptochillout [link] [comments]

Man faces felony charge because he had hidden compartment in car. With nothing in it. Why not outlaw cryptography? Cryptography and Bitcoin can be used to hide things too. The Four Horsemen of the Infocalypse (child pornographers, terrorists, drug dealer and money launderers) can use these tools.

Man faces felony charge because he had hidden compartment in car. With nothing in it. Why not outlaw cryptography? Cryptography and Bitcoin can be used to hide things too. The Four Horsemen of the Infocalypse (child pornographers, terrorists, drug dealer and money launderers) can use these tools. submitted by tedjonesweb to Bitcoin [link] [comments]

[FULL ANALYSIS] Bitcoin exchanges and payment processors in Canada are now regulated as Money Service Businesses

Hello Bitcoiners!
Many of you saw my tweet yesterday about the Bitcoin regulations in Canada. As usual, some journalists decided to write articles about my tweets without asking me for the full context :P Which means there has been a lot of misunderstanding. Particuarly, these regulations mean that we can lower the KYC requirements and no longer require ID documents or bank account connections! We can also increase the daily transaction limit from $3,000 per day to $10,000 per day for unverified accounts. The main difference is that we now have a $1,000 per-transaction limit (instead of per day) and we must report suspicious transactions. It's important to read about our reporting requirements, as it is the main difference since pretty much every exchange was doing KYC anyway.
Hopefully you appreciate the transparency, and I'm available for questions!
Cheers,
Francis
*********************************************
Text below is copied from: https://medium.com/bull-bitcoin/bitcoin-exchanges-and-payment-processors-in-canada-are-now-regulated-as-money-service-businesses-1ca820575511

Bitcoin is money, regulated like money

Notice to Canadian Bitcoin users

If you are the user of a Canadian Bitcoin company, be assured that:
You may notice that the exchange service you are using has change its transactions limits or is now requiring more information from you.
You can stop reading this email now without any consequence! Otherwise, keep regarding if you are interested in my unique insights into this important topic!

Background on regulation

Today marks an important chapter for Bitcoin’s history in Canada: Bitcoin is officially regulated as money (virtual currency) under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act of Canada (PCMLTFA), under the jurisdiction of the Financial Transaction and Reports Analysis Centre of Canada (FINTRAC).
This is the culmination of 5 years of effort by numerous Bitcoin Canadian advocates collaborating with the Ministry of Finance, Fintrac and other Canadian government agencies.
It is important to note that there is no new Bitcoin law in Canada. In June of 2014, the Governor General of Canada (representing Her Majesty Queen Elizabeth II) gave royal asset to Bill C-31, voted by parliament under Stephen Harper’s Conservative government, which included amendments to the PCMLTFA to included Bitcoin companies (named “dealers in virtual currency”) as a category of Money Service Businesses.
Thereafter, FINTRAC engaged in the process of defining what exactly is meant by “dealing in virtual currency” and what particular rules would apply to the businesses in this category. Much of our work was centred around excluding things like non-custodial wallets, nodes, mining and other activities that were not related exchange or payments processing.
To give an idea, the other categories that apply to traditional fiat currency businesses are:
When we say that Bitcoin is now regulated, what we mean is that these questions have been settled, officially published, and that they are now legally binding.
Businesses that are deemed to be “dealing in virtual currency” must register with FINTRAC as a money service business, just like they would if they were doing traditional currency exchange or payment processing.
There is no “license” required, which means that you do not need the government’s approval before you can operate a Bitcoin exchange business. However, when you operate a Money Service Business, you must register and comply with the laws… otherwise you risk jail time and large fines.

What activities are regulated as Money Service Business activity?

A virtual currency exchange transaction is defined as: “an exchange, at the request of another person or entity, of virtual currency for funds, funds for virtual currency or one virtual currency for another.” This includes, but is not limited to:

Notice to foreign Bitcoin companies with clients in Canada

Regardless of whether or not your business is based in Canada, you must register with FINTRAC as a Foreign Money Service Business, if:

How this affects BullBitcoin.com and Bylls.com

The regulation of Bitcoin exchange and payment services has always been inevitable. If we want Bitcoin to be considered as money, we must accept that it will be regulated like other monies. Our stance on the regulation issue has always been that Bitcoin exchanges and payment processors should be regulated like fiat currency exchanges and payment processors, no more, no less. This is the outcome we obtained.
To comply with these regulations, we are implementing a few changes to our Know-Your-Customer requirement and transaction limits which may paradoxically make your experience using Bull Bitcoin and Bylls even more private and convenient!

The bad news

The good news

To understand these regulations, we highly recommend reading this summary by our good friends and partners at Outlier Compliance.

Summary of our obligations

Our responsibilities:
The information required to perform a compliant know-your-customer validation:
Record keeping obligations:

Suspicious transaction reporting

Satoshi Portal is required to make suspicious transactions report to FINTRAC after we have detected a fact that amounts to reasonable grounds to suspect that one of your transactions is related to the commission or attempted commission of a money laundering offence or a terrorist activity financing offence.
Failure by Satoshi Portal Inc. to report a suspicious transaction could lead to up to five years imprisonment, a fine of up to $2,000,000, or both, for its executives.
We are not allowed to share with anyone other than FINTRAC, including our clients, the contents of a suspicious transaction report as well as the fact that a suspicious transaction report has been filed.

What is suspicious activity?

Note for bitcoinca: this section applies ONLY to Bull Bitcoin. Most exchanges have much stricter interpretation of what is suspicious. You should operate under the assumption that using Coinjoin or TOR will get you flagged at some other exchanges even though it's okay for Bull Bitcoin. That is simply because we have a more sophisticated understanding of privacy best practices.
Identifying suspicious behavior is heavily dependent on the context of each transaction. We understand and take into account that for many of our customers, privacy and libertarian beliefs are of the utmost importance, and that some users may not know that the behavior they are engaging in is suspicious. When we are concerned or confused about the behaviors of our users, we endeavour to discuss it with them before jumping to conclusions.
In general, here are a few tips:
Here are some examples of behavior that we do not consider suspicious:
Here are some example indicators of behavior that would lead us to investigate whether or not a transaction is suspicious:

What does this mean for Bitcoin?

It was always standard practice for Bitcoin companies to operate under the assumption they would eventually be regulated and adopt policies and procedures as if they were already regulated. The same practices used for legal KYC were already commonplace to mitigate fraud (chargebacks).
In addition, law enforcement and other government agencies in Canada were already issuing subpoenas and information requests to Bitcoin companies to obtain the information of users that were under investigation.
We suspect that cash-based Bitcoin exchanges, whether Bitcoin ATMs, physical Bitcoin exchanges or Peer-to-Peer trading, will be the most affected since they will no longer be able to operate without KYC and the absence of KYC was the primary feature that allowed them to justify charging such high fees and exchange rate premiums.
One thing is certain, as of today, there is no ambiguity whatsoever that Bitcoin is 100% legal and regulated in Canada!
submitted by FrancisPouliot to BitcoinCA [link] [comments]

Bitcoin Gemini Exchange Review 2020

Bitcoin Gemini Exchange Review 2020
If you are planning to place assets into cryptographic types of cash like Bitcoin or Ether, in any case, you do not understand where to start, this Gemini exchange review will help you with choosing.
Gemini Bitcoin Exchange Review 2020
You need yourself to be a productive advanced cash intermediary. By what technique will you become? To help you here's an exchange review, which will give every one of you the low down information required for a powerful enthusiasm for one of the most trusted in stages the Gemini Exchange.
We should find all the more right currently review
Gemini Review :
About Gemini Exchange
Twin kin developed Gemini Winklevoss in the year 2014. The Gemini exchange is arranged in New York. The Gemini crypto exchange is open in essentially all US states, similarly as UK, Canada, Puerto Rico, Singapore, South Korea, and Hong Kong. In 2016, Gemini transformed into the world's recently approved Ether exchange.
It positions 82th greatest exchange on earth as showed by 24-hour volume on Coinmarketcap. While Gemini Bitcoin and Gemini Ethereum trading volumes are high, the exchange is endeavoring with all undertakings to fight with those stages offering a predominant piece of the cryptographic types of cash, for instance, Binance.
Reinforced Currencies
Gemini offers crypto to fiat portions and a BTC/ETH grandstand, which makes it a quick contender to any similarity to Coinbase, Bitstamp, and Kraken. At present, it is one of the most respected and ensure about exchanges open. This is in light of the fact that it has more features to help secure customers against developers. Also, it is one exchange for the CBOE Bitcoin future settlement. Gemini Mobile application is directly available, which is amazingly basic and versatile to use.
How to use Gemini?

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1) Go to the official site and snap the "Register" tab on the upper right corner.
Enter your name, email address, and mystery word for your own record. While affirming your email address, it is critical to :
Affirm your email address and enter both your region and phone number, by then you can set up 2-Factor Authentication (2FA) which will be an additional layer of security to your record.
Incorporate your monetary equalization. Starting at now, Gemini recognizes simply bank moves and wires, as a methodology for putting away holds.
To check your record, move your organization ID proof. This will help you with executing and trade US Dollars. Moreover, it will help Gemini with as per the Bank Secrecy Act (BSA) and Anti Money Laundering (AML) rules. The affirmation time may run from a couple to a couple of days.
Subsequent to completing of all the above strategies, you can use your record for financing.
gemini crypto exchange
2) Deposit Currency
In the Menu, click Transfer Funds, by then find a good pace Bank Transfer and Exchange. Enter the whole you have to store here. Moreover, note $500 consistently is the most extraordinary most extreme for Bank moves.
3) Trading Bitcoin and Ethereum
As you store by methods for bank move, they are quickly available for trading. you can purchase by encountering the menu and picking your supported trading pair. For example, for Bitcoin BTC/USD similarly as Ethereum ETH/USD.
In the wake of embeddings the expense and sum it will process your buy demand. There is another choice to trade by methods for the business community which has exhibit orders gave by various customers.
After the fulfillment of your purchase, your record will be acknowledged with your Ethereum just as Bitcoin purchases. You can sell your computerized cash on the Gemini crypto exchange. Regardless of the way that you can't make a withdrawal until your bank move has been completely arranged.
gemini sponsor organization
4)Trading Limits
By and by, For most trade strategies, there are no limitations on trades. In any case, Automated Clearing House (ACH) moves have the greatest store most remote purpose of $500 day and $15,000 consistently for singular record holders. Associations have a state of restriction for making ACH stores of $10,000 consistently or $300,000 consistently.
Gemini Marketplace
There is a Gemini business focus that runs 24*7. Here, you can have indistinguishable number of solicitations from you wish to have, with a variety of trading choices. These include:
Market Orders – With the present best open worth, the solicitations here starting dealing with quickly against resting orders.
Purpose of repression Orders – The sum is filled at or better than a given expense. The sum which isn't dispatched lays on the solicitation book diligently until it is filled or dropped.
Brief or Cancel (IOC) Limit Orders – The sum is filled at or better than a given expense. The sum which isn't filled rapidly is dropped and doesn't lay on the perpetual solicitation book.
Maker or Cancel (MOC) Limit Orders – The sum lays on the solicitation book continually at a foreordained expense. Furthermore, the entire solicitation is dropped if there is any sum that can be filled immediately.
All solicitations made on this stage are totally sponsored and fill in as a full hold exchange. In any case, there is no edge trading Gemini. Despite that, reliably the customer's record equality should have more balance than the exceptional excitement on demand books. Also, all open solicitations decline your available leveling until they are fulfilled or dropped
Gemini Fees
In the event that there ought to be an event of moves, Gemini crypto exchange has a low cost technique and stage customers can store Bitcoin, Ether, at freed from charges for both bank and wire moves. In any case, banks will charge a cost for the customers to wire money to their Gemini account. Withdrawals on the stage are free and all customers will have 30 free withdrawals for each calendar month.
Any withdrawals more than this total will pull in costs comparable to the mining charges payable on either sort out. The costs are around 0.001 BTC or 100,000 Satoshi per trade on the Bitcoin Network and 0 GWei or 0 ETH per trade on the Ethereum Network.
MakeTaker charges
0.25% is the trading costs for both sellers(makers) and buyers(takers). If it shows up at certain trade volumes, charges will be reduced. The maker charge is 0% for 30-day trading volumes that outperform 5,000 Bitcoin or 100,000 Ether. For a comparable trading entirety, the taker run after will bubble to 0.10%.
Gemini uses dynamic maker and taker charge or reimbursement timetable, and sellers can get reimbursement on liquidity-creation trades. The particular entireties depend upon net trading volumes and the buy and sell extent over a multi day time allotment. The data are adjusted as expected and more information on charges can be found here.

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charges
Concerning purchases, the base purchase whole for Bitcoin is 0.00001 BTC, or 1000 satoshis, for Ether, the base sum is 0 .001 ETH
Security-at-Gemini
Bitcoin Gemini Reviews, is a strong exchange that has a better than average reputation in everyone. The exchange goes about as a way into the universe of cryptographic cash trading. This may be in light of the fact that various customers first quit concerning purchasing Bitcoin and Ethereum. In comprehension to Coinbase, Gemini has a near space. Wherein it allows its customers to make trade clearly to and from their records.
Gemini is a not too bad choice, for people looking to securely trade either Bitcoin or Ethereum. The exchange is a potential decision for new competitors to the market similarly as logically settled sellers who like to make trades by methods for their monetary adjusts.
Latest News
Dec 17, 2019: Well realized cash related pro association State Street picked Gemini exchange for the new propelled asset pilot adventure.
Nov 19, 2019: Gemini exchange wanders into NFT's and acquired Nifty Gateway Solution, a phase to buy Non-Fungible Tokens.
Nov 14, 2019: The exchange added Stop-Limit to the solicitations being executed on the stage.
Sep 11, 2019: Gemini dispatches Gemini Custody with 18 cryptographic types of cash
Sep 5, 2019: Gemini Clearing™, a totally electronic clearing and settlement answer for off-exchange exhibited by the stage
Aud 27, 2019: Gemini Joins the Silvergate Exchange Network
Aug 22, 2019: Gemini loosens up and reaches to Australia
April 15, 2019: Gemini wallet support Segwit
Gemini Bitcoin Exchange Review
Rundown: How to Buy Bitcoins by means of Gemini
Register a record at Gemini and check email code sent to you.
Set up two-factor validation (2FA).
Give checked ID as a major aspect of the confirmation procedure.
Include ledger.
Store cash by clicking "Move Funds", "Store into Exchange" and afterward picking the sort of bank move.
Snap "Purchase" catch and round out the buy structure to get BTC.
Is Gemini Safe?
Gemini is extremely worried about its clients' wellbeing, in this manner it utilize three arrangements of security...
MORE
Gemini Comparison with Other Exchanget
To exchange bitcoins you have to initially peruse and think about various BTC trades...
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In Which Countries Is Gemini Available?
You can arrange bitcoins through Gemini nearly in any nation, yet discover where you can't...
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Guide: Buying BTCs at Gemini
It is anything but difficult to purchase bitcoins on Gemini trade, knowing the essential standards and prerequisites...
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FAQ
Discover to what extent the exchange takes, how to pull back BTCs and what strategies for...
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Practically equivalent to Bitcoin Exchanges
We have arranged a rundown of trades, notwithstanding Gemini, that can assist you with requesting bitcoins...
MORE
With developing worth and system, bitcoin is ready to turn into the main online resource in the realm of ventures.
Gemini bitcoin trade survey
This article is worried about one of the most well known trades with regards to BTC exchange, Gemini.
What Is Gemini?
Gemini is one of the realized digital money trades that offer an assortment of exchange apparatuses for speculators that have some involvement with the business. The organization that claims the stage is enrolled as LLC in New York State, USA, offering USD to BTC and USD to ETH exchange trade.
Purchase BTC at Gemini
Propelled in 2015, Gemini offers two unmistakable commercial centers, them being:
customary trade administrations;
bitcoin barters.
Upon its appearance, the stage offered its administrations in the US just, bit by bit including different nations all the while. The organization is possessed by the Winklevoss twins, who guarantee that they are have about 1% of the complete BTC volume.
Winklevoss siblings are Gemini's proprietors
Gemini Security
With regards to the wellbeing of your assets, Gemini applies three arrangements of safety efforts that should be referenced. To start with, the stage applies advanced money safety efforts by offering hot and cold stockpiling wallets, where cold wallets have multisig capacities to forestall hacking endeavors at your equalizations.
Gemini security
The subsequent measure is identified with the exchange where the entirety of the exchanges at Gemini are led through pre-financed accounts, implying that merchants and purchasers can't post orders on the off chance that they don't have adequate BTC or fiat monetary forms in their parities. Finally, the site security comprises of two-factor verification (2FA) and HTTP encryption of all data in regards to merchants and stage's exchanges from outsiders.
Accessible Payment Methods
As of now, Gemini acknowledges stores communicated distinctly in ACH (for US dealers) and wire moves (for every other person) communicated in USD. Credit or check cards, money stores, PayPal and numerous different alternatives are wanted to be remembered for the future however are not accessible at the present time.
Buy bitcoin by means of wire move
You ought to buy in to the Gemini news source since the organization will promote the new store strategy through that channel of correspondence.
Shouldn't something be said about Fees?
While saving or pulling back your assets communicated in fiat or computerized monetary forms, dealers would find that the administrations are done totally free. Then again, Gemini charges exchange expenses are charged dependent on a month to month net exchange volume. Taker charges can extend from 0.15% to 0.25% while creator expenses from 0% to 0.25%.
Expenses at the trade
Does Gemini Have Limits?
Cryptographic money and wire stores and withdrawals don't have any constraints forced on dealers, implying that in the event that you utilize the said administrations, you can buy, sell and pull back bitcoins with no deterrents. Singular American financial specialists utilizing ACH move, then again, have $500 every day and $15.000 month to month while institutional individuals have $10.000 day by day and $300.000 month to month store limits.
No restrictions for purchasing bitcoin
Gemini Comparison
When thinking about exchanging at any trade, you should hope to analyze the administrations, expenses and impediments with other comparative stages. In this manner, we have assembled an examination investigation where we benchmarked Gemini against two other well known decisions with regards to BTC buy: Kraken and Coinbase.
Gemini versus Kraken
Kraken, much the same as Gemini, acknowledges bank moves just, with the significant contrast being that Kraken permits 5 fiat cash stores. Notwithstanding bitcoin, there are 14 more altcoins that you can exchange with at Kraken while the two trades force check on their customers as they are both controlled organizations.
Gemini versus Kraken
Kraken is fundamentally the same as Gemini as far as expenses, as creatotaker charges go somewhere in the range of 0% and 0.26%. Bank moves do accompany little expenses at Kraken while Gemini acknowledges stores for nothing. In conclusion, while Gemini exchanges two or three nations in particular, Kraken is all around accessible.
Coinbase versus Gemini
Coinbase is viewed as one of the biggest bitcoin suppliers on the planet, offering its administrations in 32 nations, USA notwithstanding. The installment strategies at Coinbase are PayPal, bank moves and credit/check cards, two more than Gemini.
Request bitcoins by means of Coinbase trade
Confirmation is an absolute necessity have at Coinbase, much like in Gemini while expenses are a ton lower at Gemini, as you pay between 1.49% to 3.49% from exchange's an incentive at Coinbase. The two trades offer BTC vaults and wallet administrations while Coinbase additionally exchanges with Litecoin which are inaccessible at Gemini.
Gemini BTC Exchange in Different Countries
Gemini's administrations are accessible in a bunch of nations around the globe, them being the US (5 states not upheld), Canada, Japan, South Korea, Hong Kong, Singapore and the United Kingdom. The five US expresses that are not bolstered are Alaska, Arizona, Hawaii, Oregon and Wisconsin.
Gemini trade in various nations
Is It Legal?
Gemini is an American LLC that adheres to New York Banking Law guidelines, actualizing BSA (Bank Secrecy Act) and AML (Anti-Money Laundry Compliance Program) arrangements, implying that customary reviews of the BSA/AML programs are being executed. Moreover, the firm requires all merchants to have reserves pre-saved before the exchange.
Bitcoin Gemini Price, is legitimate
Another significant factor of the stage's lawfulness is the way that since its beginning, Gemini has promptly accessible money related report dating 7 years back.
Does Gemini Support Its Customers?
Concerning the client service, Gemini has a thorough FAQ page where a large portion of the exchanging questions have been replied. Notwithstanding the FAQ, you can likewise top off a shape and present a solicitation to the Gemini group with respect to any issue that you may look on the stage.
Gemini client service
Because of the regular upkeep of the site's administrations, Gemini has a "Status" page where financial specialists can see which administrations and API instruments are working right now and which are definitely not.
Manual for Buy Bitcoins from Gemini
When you have gotten the cash at your Gemini account, click "Purchase" button on the dashboard page.
Buy page for bitcoins at Gemini
Presently, round out the structure on the right, giving request type, volume or estimation of BTC you wish to get and click "Purchase" to get bitcoins in your record immediately. Try to check the BTC cost at the upper left piece of the "Purchase" page to ensure it has not changed at the time you have begun the buy procedure.
Enrollment
It is totally allowed to enroll a record at Gemini bitcoin trade and the procedure begins once you click "Register" button at the upper right corner of the site. Give your complete name, email address and secret key in subsequent stage and snap "Make My Account".
Make account at Gemini
You will get an email code which you should duplicate glue into the Gemini's check page.
Contribution of enactment code on Bitcoin Gemini Registration
The accompanying advances will open up for you to finish, in this way you have to arrangement your 2FA security apparatus, include a financial balance and give checked ID to finish the enrollment methodology.
To what extent Should I Wait for Verification?
Check stage can take between an hour and a day, contingent upon various enlistment applications Gemini has right now you have begun the procedure. You ought to set up every single essential report before you start and arm yourself with persistence as a stage would set aside effort to process your data.
Confirmation process at Gemini
Would you be able to Get Bitcoins Without Verification?
At the enlistment page, you are required to check your personality and frog your financial balance. When you have presented the records, you can't enter the stage's exchange page until the help affirms your subtleties. In this way, it is unimaginable to expect to buy supply of bitcoins without confirmation.
Obligatory confirmation before purchasing BTCs at Gemini
How to Add Money to Account?
When you have finished the enrollment and confirmation of your record, click button "Move Funds", situated in the top segment of your dashboard page. In following stage, click "Store Into Exchange" and pick either USD or Wire alternative, contingent upon what financial balance you have included at enrollment stage.
Add assets to Gemini account
You can likewise store bitcoins in your Gemini wallet too.
Store BTCs in the Gemini wallet
At the last phase of wire move subsidizing process, you have to give bank's wiring data, for example, your record number and other significant data that can be found by clicking "Bank Settings".
Give bank's wiring data
When data has been given, basically click "Store" button which will show up at the base of the page.
Secure Your Account
Keep the entirety of your record and wallet passwords out of the programmer's compass by continually evolving them. Monitor the new secret key by keeping in touch with them down on a bit of paper as to not overlook them meanwhile.
Record with 2FA on trade
You as of now have 2FA from the enlistment stage and don't give your private data to some other dealer on the stage.
FAQ
To what extent Does It Take to Make Transaction?
It takes 4 to 5 days to store assets in your Gemini account while exchanges themselves are done following you the exchange started. Diverse request types have distinctive length, contingent upon what dealer wishes to accomplish.
Sitting tight for exchanges on the trade
Would i be able to Buy Bitcoin with PayPal at Gemini?
Now, brokers can't utilize PayPal as store technique at Gemini. You ought to buy in to the trade's news channel as to get warnings if the strategy opens up to store alternative later on.
Does Gemini Have a BTC Wallet?
The stage offers two kinds of wallet administrations, one being "hot" wallet and another being vault stockpiling. Both are based just, with the principle contrast being that vault stockpiling gives extra security keys that are utilized while moving bitcoins all through the wallet. Along these lines, vault administrations are esteemed as more secure than the standard BTC wallet.
Gemini wallet
Pulling back Your Bitcoins from Gemini
At the dashboard page, click "Move Funds" and afterward "Pull back From Exchange" to begin the procedure. Pick bitcoins to continue towards the withdrawal structure. Determine the measure of BTC you with to escape the trade and give your wallet address. Snap "Survey Withdrawal" and check the data. When you are fulfilled, click "Affirm" to end the procedure. Your coins will show up inside 24 hours to your ideal area.
Pull back BTC from Gemini
Instructions to Order BTC with Credit/Debit Card at Gemini
As with PayPal, it is preposterous to expect to buy bitcoins with the assistance of credit or charge cards at Gemini, since the choice isn't accessible right now. Stay aware of trade's news and declarations as the CC/DC choice may open up later on.
Gemini Mobile App
Portable stages are yet to be created by Gemini, implying that exchange is accessible on perusing stage as it were. Watch out for the declaration, as the organization may make the push towards telephone exchange not so distant future.
Purchase BTC just on Gemini perusing stage
Gemini Analogs
Aside from Gemini, we at BitcoinBestBuy have checked on numerous different stages that can assist you with getting bitcoins effectively and securely. They all change regarding local accessibility, expenses, buy strategies and confirmation necessities, so make a point to check different articles also.
Get BTC at digital money stages
Coinbase Exchange Review
Being one of the biggest BTC exchanging stages the world, we made a survey of their charges, store choices and other important data with respect to the trade. We have likewise given bit by bit controls on the best way to buy and pull back assets and coins from Coinbase.
Coinbase survey
Full Review Coinbase Bitcoin Gemini Exchange
Find out About Kraken
Kraken is another trade that offers bitcoins through bank moves and its administrations are all inclusive accessible. We made a survey of Kraken's advantages and disadvantages, giving our customers a diagram of the trade as far as expenses the organization charges, check prerequisites and buy procedures of the stage.
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Weekly news review (August 24-30)

Weekly news review (August 24-30)
Hello Community!
Let's dive into last week's news highlights.
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Academic interest in crypto and blockchain is increasing across the board, according to a study from Coinbase published Wednesday.
The crypto exchange looked at the world’s top 50 universities (according to the U.S. News & World Report ranking) and found that 56 percent have blockchain or crypto classes available. Last year, Coinbase found 42 percent to offer such classes.
Working with survey site Qriously, Coinbase also surveyed 735 students ages 16 and older, finding a 6 percent uptick in student interest in crypto or blockchain coursework. As part of last year’s Coinbase study, 28 percent of respondents said they would be interested in such a class.
Moreover, compared to last year, twice as many university students, or 18 percent, partook in a crypto or blockchain class.

A 25-year-old man from Westwood, Los Angeles, has plead guilty to federal charges for having exchanged up to $25 million in cash and crypto without a license and anti-money laundering program.
Kunal Kalra, also known as “Kumar,” “shecklemayne” and “coinman,” was indicted on Friday for allegedly trading cash and crypto for individuals including drug dealers, partially via his bitcoin ATM kiosk.
An announcement from the U.S. Justice Department last Friday said Kalra, who is expected to make his first court appearance next month, has agreed to plead guilty to the charges.
As part of the investigation, the law enforcement seized about $889,000 in cash from Kalra and about 54.3 bitcoin and other cryptocurrencies, worth more than half-million dollars. The announcement said the maximum penalty Kalra could face is to serve a life time behind bars.

Circle CEO Jeremy Allaire says the U.S. lagging behind China’s development of a national digital currency could alter the way Western companies transfer payments.
Speaking on the Global Coin Research podcast, Allaire said China is setting the pace in the development of a digital currency equivalent of its fiat currency, the renminbi, and could soon bypass Western rules through direct settlements. Allaire also said Circle continues to be interested in the development of stablecoins, such as its USD Coin.

A new Trojan dropper dubbed xHelper was observed while slowly but steadily spreading to more and more Android devices since May, with over 32,000 smartphones and tablets having been found infected in the last four months.
As the researchers say, the number of compromised smartphones and tablets is increasing each day, with hundreds of new targets getting infected on a daily basis.
While the precise infection vector has not yet been discovered, "analysis shows that xHelper is being hosted on IP addresses in the United States. One was found in New York City, New York; and another in Dallas, Texas."
As a method to prevent getting infected, Malwarebytes Labs recommends being careful while browsing the web on your Android device, cautiously selecting the mobile websites you visit.

In the wake of data abuse scandals and several instances of malware app being discovered on the Play Store, Google today expanded its bug bounty program to beef up the security of Android apps and Chrome extensions distributed through its platform.
The expansion in Google's vulnerability reward program majorly includes two main announcements. First, a new program, dubbed 'Developer Data Protection Reward Program' (DDPRP), wherein Google will reward security researchers and hackers who find "verifiably and unambiguous evidence" of data abuse issues in Android apps, OAuth projects, and Chrome extensions.
Second, expanding the scope of its Google Play Security Rewards Program (GPSRP) to include all Android apps from the Google Play Store with over 100 million or more installs, helping affected app developers fix vulnerabilities through responsibly disclosures.'

Let us know what you think in the comments section down below!
submitted by rokkex to Rokkex [link] [comments]

Silk Road Seller Laundered Money Using Bitcoin Worth $19 Million

Global Exchange- Hugh Brian Haney, a narcotics drug dealer, has been found guilty of money laundering $19 million in profit via the Silk Road darknet marketplace. Silk Road seller laundered money using bitcoin worth $19 million.
As per a news release, he was charged with laundering nearly $20 million utilizing Bitcoin last year. A plea deal was announced with Hugh Brian Haney by the prosecutors of the Southern District of New York.
Silk Road was one of the common drug routes and a place for the dark web’s Bitcoin dealers. Ross Ulbricht, Silk Road’s operator, was arrested in 2013. He is now serving life imprisonment for being guilty of security hacking, narcotics supply and unlawful acts.
Haney was a significant member of Pharmville, a narcotics trafficking organization. In 2012, he obtained almost 4,000 Bitcoin from accounts related to Silk Road. He was found to have traded drugs such as Fentanyl, Oxycontin and was also involved in narcotics trafficking.
Geoffrey Berman, the US Attorney, said,
“Hugh Haney used Silk Road as a means to sell drugs to people all over the world.”
Adding,
“Then he laundered more than $19 million in profits through cryptocurrency.”
Haney was arrested in July 2019 after he had liquidated his Bitcoin for $19,147,053 in 2018. Though Haney said he got his Bitcoin from a mining act, researchers proved using the “blockchain analysis software” that the funds came from Silk Road.
Haney was found guilty of covering up money laundering and being involved in a property transaction that was criminally derived. Sentencing is scheduled February next year for him.
submitted by mohammed_nauman96 to u/mohammed_nauman96 [link] [comments]

US citizen convicted of laundering $ 25 million through BTC

US citizen convicted of laundering $ 25 million through BTC

https://preview.redd.it/2g9do47u0yi31.png?width=900&format=png&auto=webp&s=5594ecfe8cb5cb78c2ce2b12d8e9e52b392cffcd
Los Angeles resident Kunal Kalra pleaded guilty to the sale of methamphetamine and the organization of a scheme for money laundering through bitcoin.
According to the local edition of U.S. News, Kalra pleaded guilty to laundering $25 million through BTC and distributing methamphetamines. Now he faces life imprisonment, and is also charged with money laundering in Texas.
It is reported that between 2015 and 2017, Kalra engaged in the exchange of BTC and dollars, managed a crypto machine and made deals with drug dealers. He sold two pounds of methamphetamine to an undercover law enforcement agent.
Recall that recently another US citizen received a prison term for selling drugs for cryptocurrencies. In addition, in July, a drug dealer with Silk Road was charged with laundering millions of dollars through BTC.
#News #USA #MoneyLaundering #Crime #Bitcoin
submitted by QBEXCHANE to u/QBEXCHANE [link] [comments]

US citizen jailed for selling drugs by cryptocurrency.

US citizen jailed for selling drugs by cryptocurrency.

California resident Sky Justin Gornik has been convicted of selling drugs by cryptocurrencies in darknet markets.
Gornik pleaded guilty to using the Alpha Bay, Trade Route, Abraxas, Evolution, Outlaw Market, and Dream Market trading floors to trade fentanyl, carfentanil, ketamine, oxycodone, amphetamine, and other drugs, according to a U.S. Department of Justice statement.
According to court documents, law enforcement officers seized 1.7 grams of carfentanil and fentanyl tablets when they searched Gornik’s house on June 7, 2017. The seized carfentanil is an effective synthetic opioid, "the amount of scorpion venom exceeds 86,000."
It is reported that Gornik bought 600-1200 fentanyl tablets per week for two years from another darknet dealerSteven Wallace George. George was also prosecuted by the Federal government of Oklahoma for making fentanyl tablets.
Gornik agreed to confiscate millions of dollars ' worth of cryptocurrencies, including BTC, STRAT, ETH, and XMR, obtained for drug trafficking. He kept cryptocurrencies on accounts of the American exchanges Bittrex and Poloniex.
"Gornik recognized that these cryptocurrencies represented the proceeds of drug trafficking and related money laundering through the darknet", – stated in the message of Prosecutor's office for the southern district of California.
Gornik was sentenced to 70 months in prison for selling drugs and laundering proceeds using digital currencies. Special agent Juan Munoz said:
"Today's sentence to Gornik demonstrates the commitment of the internal security Service (HSI) and our Federal partners to bring such criminals to justice. HSI will continue to aggressively pursue those who violate the law and endanger the safety of citizens by selling opioids and other dangerous drugs through the darknet."
Recall that in July, a drug dealer with Silk Road was accused of laundering millions of dollars through BTC. In addition, in April, three drug dealers in the darknet faced similar charges. Last year, the European police seized from traders darknet cryptocurrency € 5.7 million.
#News #USA #Crime #money Laundering #Darknet #Altcoins #Bitcoin
submitted by QBEXCHANE to u/QBEXCHANE [link] [comments]

The fundamentals of bitcoin as an asset exist and they are stupider than you can imagine

tldr; tldr; Hodling is deflationary and all those wild price swings from bitcoin are changes in the fundamental value of bitcoin. Really.
tldr; Imagine there is a market where $100 worth of goods are sold every day using 100 bitcoins which cycle around. Then each bitcoin would be worth $1. Now suppose that 50 of the bitcoins were being held in anticipation of growing in value so only 50 bitcoins were cycling each day. For all the goods in the market to be sold every day each bitcoin will now be worth $2.
Introduction There has been a lot of discussion about what the fundamental value of bitcoin is. The consensus view in this subreddit is that the fundamental value is zero. I argue in this post that the fundamental value of bitcoin is whatever the price is right now, or a something close to it. This is because the fundamentals of bitcoin are stupid. Unimaginably stupid.
Bitcoin as Currency Bitcoin is a terrible currency compared to normal statist filthy fiat. Bitcoins are often permanently lost due to hacking or easily made mistakes. Transactions take considerable time to be confirmed. The price is highly volatile. But this post isn’t going into those issues in depth.
There is little evidence for mainstream Bitcoin use. A report by Morgan Stanley on the acceptance of Bitcoin from online retailers found that only 3 out of the 500 online retailers tracked accepted Bitcoin payments, a decrease from 5 in the previous year. The report concluded: “Bitcoin acceptance is virtually zero and shrinking”.
The number of transaction on darknet markets is large. On darknet markets users buy illegal products using cryptocurrencies (not just Bitcoin). Due to their illegal nature, it is impossible to know the exact value of transactions that take place on them. Between February 2011 and July 2013 the darknet market Silk Road had 1,229,465 transactions comprising 9,519,644 bitcoins in revenue. Darknet markets, along with ransomware payments are the only uses where there is evidence of a substantial number of bitcoin transactions taking place.
To work at scale darknet markets require cryptocurrency to pay for goods on sale. The anonymous nature of cryptocurrency allows transactions to take place without the buyer or the seller knowing anything about each other (although if a buyer has drugs mailed to them the seller will know who they are). If darknet markets used another form of payment then law enforcement could buy something and then track both the money going to the seller and the commission paid to the darknet market. It isn’t true as many people have claimed that nothing backs bitcoin. Bitcoin is backed by darknet markets.
There are a few kinds of people who buy bitcoin and want to spend it. They include drug buyers, those who need to pay off ransomware, money launders, fraudsters, and a few others but for simplicity’s sake I will just call them drug buyers. Likewise, there are a few types of people who sell products for bitcoin but again for simplicity’s sake I will call them drug sellers.
Non-circularity Bitcoin is a currency with a property that I call non-circularity. With Actual Money, when I buy something in a shop, the money I paid with goes towards the wages of the staff, rent and the products themselves among other expenses. This money then flows on to others. When a drug seller receives bitcoin in exchange for their drugs they can’t use the bitcoin to pay for their groceries or to pay their rent. They must exchange the bitcoin for filthy fiat to buy food. The inability to use bitcoin for further purchases means it is a non-circular currency. Bitcoin is a medium of a medium of exchange.
A full bitcoin transaction thus consists of three parts:
  1. A drug buyer goes to a bitcoin exchange to get bitcoin in exchange for filthy fiat
  2. The drug buyer goes to the DNM to exchange bitcoin for drugs from the drug seller
  3. The drug seller goes to the bitcoin exchange to get filthy fiat in exchange for bitcoin
An exchange is any place which matches buyers and sellers of bitcoin. This includes online exchanges like Coinbase as well as LocalBitcoins which matches people for face to face transactions. As nobody receives bitcoin for payment except drug dealers, the only place for drug buyers to get bitcoin is an exchange. The extreme volatility of bitcoin means that drug buyers and sellers try to complete the process as quickly as possible and avoid holding onto bitcoin.
Perfect Price Unstickiness For normal currencies prices are sticky. That means that nominal prices do not respond quickly to changing economic conditions. In contrast bitcoin has what I call perfect price unstickiness so the price of goods in bitcoin changes almost perfectly to changes in the value of bitcoin.
This is because prices for items which can be bought with bitcoin are never actually set in bitcoin, probably due to the high volatility. Instead they are set in fiat. The amount in fiat can either be listed directly, so $US50 for these drugs, or the price can be listed in the converted amount of bitcoin, 0.005BTC if 1 BTC = $US10,000. Changes in the price of bitcoin on exchanges are instantly reflected in the prices of drugs in bitcoins on darknet markets.
Hodling Another feature of bitcoin that should be considered is that people hodl bitcoin. The word comes from a typo of ‘hold’. Bitcoin is often bought on exchanges not for use as a currency to buy drugs, but as an asset in expectation of a price rise. Hodlers are the third type of user of bitcoin along with drug buyers and drug sellers. Although they don’t use it.
What’s the difference between an asset that is held and one that is hodled? This is admittedly vague, but an asset is hodled if it is being held, it can be held for long periods at low costs, it can but isn’t generating any income and there are no plans to generate income from it soon.
Cash under the mattress is being hodled, cash in my wallet that I am going to buy stuff with soon is not. Money in my bank account is generating income and so is not hodled. Bitcoin held in anticipation of price rises is being hodled. Bitcoin bought to buy drugs but which has not been used yet is not. Gold stored in a vault is being hodled, gold used for electronics purposes is not (jewellery is a harder case). A vacant block of land with no plans to develop it or use it for anything is being hodled but one that is soon going to have an apartment block built on it is not.
Commodities can be held and do not generate income until sold but it is expensive to hold most commodities for long periods of time. This prevents most commodities from being hodled.
Velocity The velocity of money is the average number of times a unit of fiat changes hands in a period. You can skip the next three paragraphs as they are a little annoying and you can get by without them. Just know that I am defining the velocity of bitcoin as what the velocity of bitcoin would be if no bitcoin was being hodled.
Due to hodling, the velocity of bitcoin under the conventional definition can vary wildly. Consider two cases. Both have 100 bitcoins, 100 transactions a day and all non-hodled bitcoins are spent each day. The first has no hodled bitcoins, the second 50 hodled bitcoins. The first has a velocity of bitcoin of 1 transaction per day, the second is 0.5 per day.
I want a definition of velocity of bitcoin that is not impacted by changes in hodling. I did consider doing this analysis through changes in velocity but the final formula is easier to understand if we find a definition of velocity of bitcoin that is independent of the level of hodling.
The definition that achieves this is (Length of Time)/(Average length of time to complete transaction). When there is no hodling the two definitions agree but the new definition is unchanged by any rise or fall in the level of hodling, which is what we need. From this point on when I refer to the velocity of bitcoin I am referring to the second definition.
The actual time to complete a bitcoin transaction seems to be over a week. In an interview one vendor claimed that it took one week for the bitcoin to be released from escrow and longer to convert it to actual money.
Intuitive argument Assume that the amount of drugs sold on darknet markets changes little from week to week. If the price of bitcoin doubles over the week then the number of bitcoins flowing through the darknet markets will halve. So where have the bitcoins gone? Drug buyers and sellers don’t have them. The only option is hodlers. In fact, it was the hodlers buying the bitcoins that caused the price to change.
Formula The conventional formula for the relationship between velocity of money (V), nominal amount of money (M), price level (P) and real economic activity (Q) is
V*M = P*Q
I am going to change that equation slightly so it now concerns the velocity of bitcoin (V), the total number of bitcoins (M), the price level of bitcoin (P), the total value in fiat of all economic transactions (Q) and the proportion of bitcoins that are hodled (h). If h*M bitcoins are being hodled then there are (1-h)*M bitcoins being used in economic transactions. The new equation is
V*(1-h)*M = P*Q
Next we isolate P:
P = V*(1-h)*M/Q
If the price level changes from 1 to 1.1 that means that there has been 10% inflation over the period and that the value of bitcoin has fallen. To find the value of a single bitcoin we have to take the reciprocal of P and that gives a formula for the true value of bitcoin:
1/P = Q/[V*(1-h)*M]
In the rest of the post when I write the price of bitcoin I mean the price bitcoin sells for on exchanges. I establish in the next section that this price must be close to the true value of bitcoin.
Equilibrium This section uses the flow of bitcoin model established earlier. We assume no activity from hodlers and that economic users do not hodl bitcoin (not true but it simplifies and does not hurt the model). Furthermore, we assume that all activity on the bitcoin exchanges happens, then all activity on the darknet markets happens. Drug sellers sell their bitcoin to drug buyers, then drug buyers use the bitcoin to buy drugs on the darknet markets. Neither the exchanges or the darknet markets charge commissions. I use specific numbers but my reasoning is easily generalizable.
To establish why the equation is true we must consider what happens if the actual price is higher or lower than the price given by the formula. First let us suppose that the price is lower than the price predicted by the formula. Over the time period of a day suppose that Q = 100 (so $100 worth of transactions a day), V = 1 (transactions take a day), M = 100 (100 bitcoins) and h = 0.5 (50 bitcoins are hodled). This gives a predicted price of $2. Suppose the price is instead $1.
Every day there are $100 worth of drugs available to be sold and buyers willing to buy $100 worth of drugs. At a price of $1 and with only 50 bitcoins available for economic use each day that means that only $50 worth of drugs can be sold. This would drop Q to 50 and immediately correct the equation.
However, there are buyers and sellers who want more drug dealing than that. Some buyers are not going to be able to get their drugs given the current price. Some of them will be willing to pay higher prices for bitcoin to guarantee they can have their drugs. Suppose that the drug sellers have 50 bitcoins (hodlers also have 50). They want to sell their 50 bitcoins to drug buyers on an exchange. Some drug buyers then bid the price of bitcoin up to $1.10 (for example). This benefits other drug buyers as now $55 worth of drug transactions can take place each day. In this way, the price will be bid up to $2, the equilibrium price.
If the price is $1 and the drug buyers have the 50 bitcoins then they will spend the bitcoins to buy $50 worth of drugs and then we are in the situation above.
Now suppose the reverse happens and the actual price is higher than the predicted price. Let the actual price be $4, with all the same example values from the previous example, so the predicted price is $2. On the exchange drug sellers have 50 bitcoins worth $200 to sell. Drug buyers want to buy $100 worth of bitcoin. At this price only 25 bitcoins are sold. To ensure they sell more of their bitcoin, drug buyers bid down the price. If the price does not immediately reach $2 then the left-over bitcoins will be held by the drug sellers until the next day when the price will be bid down again.
The drug sellers holding bitcoin for a few extra days is not the same as hodling because they are actively trying to sell them on an exchange but they haven’t because the price isn’t in equilibrium. They could instead decide to sell only 25 bitcoins and hodl the other 25. This would raise h to 0.75 and the price would be in equilibrium again.
Now suppose that the drug buyers have 50 bitcoins and the price is $4. Then $100 worth of drugs are bought with 25 bitcoins. The drug sellers will not be able to sell their bitcoin as drug buyers already have enough bitcoin to buy the next round of drugs they want. The drug buyers spend their last 25 bitcoin and drug sellers now have 50 bitcoins and the situation is as above.
In conclusion, the price of Bitcoin is fundamentally determined by speculators and brought into equilibrium by criminals.
Inflows and Outflows of Hodling The previous section treated the level of hodling as constant, except when drug buyers or sellers decide to hodl extra bitcoins that are in their possession. Now we will treat the amount of hodled bitcoins as changing. The next topic to consider is the relationship between filthy fiat spent to hodl bitcoins and the bitcoin price.
To calculate how much it costs to raise the hodl ratio from 0 to h we assume that the bitcoins are bought continuously. We integrate the function Q/[M*V*(1-t/M)] between 0 and h*M. The result is (Q/V)ln[1/(1-h)].
To double the price of bitcoin by taking h from 0 to 0.5 will cost (Q/V)ln(2). In fact, it will always cost this amount to double the price of bitcoin as we can see by finding the difference between the total value of hodled bitcoin when we consider hodling levels of h and (h+1)/2.
This means that the price of bitcoin rises exponentially when a constant amount of new money buys bitcoin to hodl. I would illustrate this with a log-scale graph but I don’t know where to find one. It also means that the market capitalisation of a cryptocurrency gives very little idea about how much the cryptocurrency is worth. It is an impossibility for all hodlers to receive the Actual Money that they think their bitcoin is worth.
Volatility People hoping to get rich and their buying and selling bitcoin is what causes bitcoin’s extreme volatility. Theoretically this could be stopped if there was a bank where hodlers could deposit their bitcoins and earn interest. However, for this to work would require the existence of a bitcoin bank which is not a Ponzi which seems like an unlikely outcome.
Hodling Gold A quick digression into gold, but I suspect someone has already thought of what follows. We can consider gold like a conventional commodity with conventional supply and demand curves (the real world for all commodities is more complicated but this is going to be quick). But people also hodl gold. If hodlers decide to buy $100 million worth of gold produced in the year, then that will change the equilibrium price. The new price is such that the difference between the quantity demanded by non-hodlers and the quantity supplied at that price multiplied by the price is 100 million.
If the overall level of hodling declines then the reverse happens. The hodlers sell an amount of gold, that amount is the difference between the amount supplied and demanded. The hodlers earn that amount multiplied by the new lower price. (I assumed people bought a fiat amount of gold and sold a volume of gold to make things easier).
Without another hodler to take on the gold or an improvement in market conditions, the hodlers are guaranteed a loss. To make a profit hodling gold you need there to be hodlers to sell it on to (or an improvement in the underlying factors). It follows that all the gold hodled in the world today cannot be sold without causing the fundamentals of gold to collapse. With 40% of the gold produced in 2017 being hodled this will eventually become a significant issue.
Full Reserve Banking Another place where we can consider the impact of hodling is full reserve banking. It is a form of banking where banks are required to have cash on hand equal to the full amount in all demand deposit accounts. The bank does not lend this money. This contrasts with the present system where banks are only required to have a certain fraction of this amount on hand, called fractional reserve banking. Money in a fractional reserve bank account is not being hodled (or is, but to a more limited degree) as it is being lent on to other people and it is generating income for the depositor.
Deposits under full reserve banking are hodling. They are like cash stuffed under a mattress but have better security. In a recession people increase their saving rates. Much of this additional saving will be in liquid assets because of fears of economic trouble. This rise in deposits under full reserve is an increase in hodled cash which then causes deflation. This is a big problem in a recession. (Somebody else has probably already made this observation).
Velocity and Value Consider the equation of bitcoin’s value again. Notice that the value increases when V decreases. Which means that the length of time to complete a transaction has increased. Bitcoin is an asset and a currency and its value as an asset increases as the length of time it takes to complete a transaction increases. This is a minor bit of stupidity which surprised me but seems obvious in retrospect as if bitcoins take longer to be processed then they must be worth more so that all transactions can happen. (This is assuming that a decrease in V does not also cause a decrease in Q which might be caused by drug buyers and sellers switching to a different cryptocurrency).
Hodler Behavior With one exception which I might make in another post I make no assumptions about hodler behaviour. I think they are buying and selling with no rational basis. But there are two rational reasons why someone would expect the price of bitcoin to rise: increased economic activity using the cryptocurrency in the darknet markets or an increased level of hodling in the future. The DNM is an actual economic activity but due to its illegality knowing anything about the amounts involved is impossible for almost everyone as is predicting their trends. Future hodling levels are also impossible to predict, unless you run a pump and dump. We can’t expect any sort of rational behavior from hodlers.
Nakamoto Scheme Preston Byrne developed the concept of a Nakamoto Scheme to describe cryptocurrencies because of how they differed from Ponzis and pyramid schemes. While bitcoin has been frequently called a Ponzi or pyramid scheme it is clearly something different. There are no “dividends” paid or any sort of organised structure. There are similarities, notably early adopters make their money at the expense of later adopters. Like in pyramid schemes hodlers try to convince new people to join in.
It is best to consider bitcoin as a type of asset which is uniquely suited for a pump and dump. When hodlers buy bitcoin, and encourage others to do the same (the pump) the fundamental price of bitcoin really is raised by these actions which helps the pump.
To add to Byrne’s work, we should put the properties of cryptocurrency assets at the centre of the scheme. A Nakamoto scheme works like this: first create a cryptocurrency and keep most of it for yourself. Then release it and try to get as many other people hodling as possible and try to get the darknet markets to adopt it (I’m looking at you Monero). This increases the fundamental value of the asset. Then dump your hodlings. Pocket the actual money. This is probably legal right now. But I’m not a law-knowing person.
For the hodler the Nakamoto scheme is like going to a party. You arrive and leave later on. If there are more people at the party when you leave compared to when you arrived then you’ve made a profit. There is also drug dealing going on at the party. The change in the level of drug dealing also impacts your profits. You have to try and get more people to come to the party and be careful of everyone else at the party who have the exact same incentives as you. It is a weird new form of scam.
Lower bound on price While the price of bitcoin can theoretically be infinitely high there is a lower bound on the price when the hodling ratio is zero. For given levels of Q, V and M the value of bitcoin can never go below Q/[V*M] (the highest possible price for bitcoin is when 1 satoshi is equal to the value of a transaction).
Some bitcoins have been permanently lost due to people losing their wallet keys or bitcoins being sent to the wrong address. If we suppose that H is the proportion of coins that have been permanently lost then the actual lower bound is Q/[V*(1-H)*M]. Note that a hodler losing their coins does not change the present fundamental value of bitcoin.
What could cause bitcoin’s price to go lower? Besides a mass hodler sell-off the obvious reason is a permanent decline in Q. What could cause this? Law enforcement have successfully shut down many darknet markets but others have replaced them quickly. What could really hurt darknet markets is increased government scrutiny of exchanges. When governments realise that bitcoin has no use beyond criminal transactions and speculation they might decide to treat every bitcoin transaction as inherently suspicious and regulate exchanges heavily. This will make bitcoin much harder to use for criminal transactions and thus greatly decrease Q and the value of bitcoin.
Previous work This post is not entirely original. Satoshi himself said that if a bitcoin user wanted to give a donation to everyone else then they should delete the keys to their wallet and increase the value of everybody else’s bitcoins. I realised that someone who hodled a bitcoin would temporarily have the same effect.
More significantly Joseph C Wang came up with a formula very similar to mine. A significant difference is that he thought increased economic activity with bitcoin would not cause an increase in bitcoin’s value but an increase in its velocity. My model has nominal prices of drugs in bitcoin falling when Q increases. Wang has prices remaining the same and the velocity of bitcoin increasing to handle the extra transactions. I developed my formula before I became aware of Wang’s work.
Further Topics This post is over 4000 words so I have not gone into depth on a few subjects like the costs of block rewards (higher than you think), shocks like darknet market shutdowns, why bitcoin can’t fall to a liquidity trap, how to value a cryptocurrency that isn’t being used for economic transactions and why it makes sense that bitcoin and bcash had a higher combined value at the time of the fork compared to bitcoin alone. If there is demand I’ll put together a second post which will cover these issues.
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The Collective Network Review

The COLLECTIVE is made-up of five noteworthy sectors which will be clarified by me in the blink of an eye, this system is a Guernsey-based fintech organization that envelops of various working items. There are five existing items on the collective network to be specific: the aggregate community organization, the tradeone unified exchange, the decentralized exchange, collectivego computer game, and the group worldwide activity.
The previously mentioned will all be driven by the COMMUNITY DEVELOPMENT EXCHANGE TOKEN CDEX. It will fill in as the main thrust of the #collective in which the whole system will work with. The utilization of CDEX tokens has bunches of advantages and use cases for clients of the platform.
Collective Community Company
The COLLECTIVE community offers the community the executives administration for cryptocurrency organizations, and they will give a top of the line esteemed administrations to their customers. They will give all day, every day client care administration support, advise their customers about the most recent market data, give thoughts that will be productive for their customers.
They will help make social networks attention to haul in the required consideration for their customer, by and by the most ideal approach to make mindfulness is to advertise your business on the web. Online marketing has conveyed a ton of battling organizations to the spotlight. Collective additionally have the required protocol to oversee abundance programs, arrange meetups, rivalries, advancements, and numerous different mindfulness systems.
TRADEONE Centralized Exchange
Tradeone unified exchange is the place exchange clients get a half markdown charge on administration expenses paid in cdex tokens, a reliability reward will likewise be made accessible to visit clients on a proportion 1:1 premise. Utilizing the inherent exchange on the COLLECTIVE will guarantee various advantages for its clients.
Tradeone exchange was made to oblige a wide range of cryptocurrency extending from Bitcoin, Ethereum, Litecoin, EOS, Stellar, Erc-20 agreeable tokens and all others. It is a verified, consistent, quick, solid, adaptable digital currency exchange fit for executing more than 10,000 exchanges for every second. Tradeone offers a simple to explore interface, sufficient liquidity, influence and above all low spreads between the purchase and move orders.
Decentralized Exchange
This part of the collective ecosystem associates purchasers and merchants in a single space, dealers exchange shared (P2P) without the need of mediators (go betweens). There is no need of KYC (know your client.) and AML (against money laundering) checks, camouflage of merchants, low expenses, and in particular an abnormal state of security.
Ethereum based tokens will be the main tokens accessible on the dex, on account of its decentralized nature clients won't need to enroll or store their private keys on the dex, they will most likely connection diverse sorts of wallets bolstered by the COLLECTIVE platform, a portion of these upheld wallets incorporates MyEtherWallet, MyCrypto, MetaMask, Ledger and so on.
Collectivego Game
The collectivego computer game is the place amusement sweethearts can get boosted doing what they cherish which is playing computer games, gamers will appreciate gaming on the platform since it has VR (augmented reality) usefulness which makes them feel like they're inside the diversion and recreations from best recreations engineers will be made accessible on the platform.
https://www.thecollectivegroup.org/ico/
https://www.thecollectivegroup.org/ico/WP_Collective.pdf
Bounty0x ID: chemist32
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Vendor and Dream Market Administrator “OxyMonster” Sentenced to 20 Years In Prison

Original link: https://www.deepdotweb.com/2018/10/21/darkweb-drug-dealer-oxymonster-sentenced-to-20-years-in-prison/
Vendor and Dream Market Administrator “OxyMonster” Sentenced to 20 Years In Prison
The darkweb drug vendor OxyMonster was sentenced to 20 years in prison in a Florida courtroom in early October. The court heard that OxyMonster both sold controlled substances on several darkweb markets and worked as a senior staff member on one of the most popular markets in existence.
Gal Vallerius, a 36-year-old French national who had entered the United States to attend a beard competition, was investigated and prosecuted by the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force. The Task Force’s work led to a conviction through a plea agreement signed on August 28. And U.S. District Court Judge Robert N. Scola Jr. handed down a prison sentence based on the information provided in the plea agreement and information disclosed in a factual proffer. In addition to the prison sentence, Judge Scola ordered Vallerius to forfeit almost 100 Bitcoin and 121 Bitcoin Cash.
Vallerius sold substance on several darkweb marketplaces and reportedly worked as either a moderator or an administrator of more than one market. United States law enforcement, however, focused only on the man’s activities that took place under the OxyMonster moniker on Dream Market. On Dream, Vallerius sold more controlled substances than mentioned in court or referenced in the indictment. Assistant U.S. Attorney Juan A. Gonzalez of the Southern District of Florida, Trial Attorney C. Alden Pelker, and former Assistant U.S. Attorney Frank R. Maderal sought a drug conviction for Conspiracy to Possess with Intent to Distribute Oxycodone and Ritalin. Vallerius pleaded guilty to the Oxycodone and Ritalin charges in August.
They also pushed for and later obtained a conviction for Conspiracy to Launder Money. The money laundering charge stemmed from Vallerius’ method of cashing out on his cryptocurrency proceeds. His laundering also was part of what led to his identification as OxyMonster; the Drug Enforcement Administration discovered a connection between a Bitcoin tip jar address on OxyMonster’s profile and a LocalBitcoins account under the name “Gal Vallerius.” Vallerius either sent money directly from the Dream tip jar wallet to a wallet under his control that he used with LocalBitcoins customers or the Drug Enforcement Administration employed some advanced blockchain analysis to learn where the OxyMonster’s tips went.
Dozens of agencies and state organizations were credited for Valentine’s arrest, conviction, and sentencing. Among those credited was the IRS Criminal Investigation (IRS-CI) unit. Given the IRS’ advanced role in tracing money, tracing the tip jar Bitcoin may have been more difficult than simply looking at a single output from the address on the OxyMonster Dream profile.
Other agencies were led by U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida as mentioned in the press release, and included the Drug Enforcement Administration; the Federal Bureau of Investigation Miami Field Office; the Federal Bureau of Investigation Cyber Task Force; the Miami office of the United States Postal Inspection Service; Finnish International Judicial Administration of the Ministry of Justice; Finnish National Police; Customs and Border Protection Field Operations in Atlanta; Dutch National Police; Europol; the Department of Justice’s Office of International Affairs; the French Ministry of Justice; the South Florida High Intensity Drug Trafficking Area Task Force; and the Organized Crime Drug Enforcement Task Force. Prosecutor’s Offices in both the Northern District of Georgia and the Southern District of Florida also received credit.
The roles of some of the international agencies were not revealed in any court documents. However, Georgia was involved in an essential part of the collection of evidence, arrest, and extradition. Law enforcement in Florida had no simple way to get Vallerius to the United States without risking the destruction of evidence. During the investigation, they learned that Vallerius would fix their problem for them. Vallerius was known for his beard. He entered competitions, chatted with other bearded individuals on forums, and posted about his beard on social networking sites. The DEA learned that Vallerius had planned to enter a beard competition in the United States. Vallerius flew from France to Atlanta, Georgia. The DEA arrested him after his plane had landed. They found that he carried a laptop with access to his Bitcoin and Bitcoin Cash wallets, as well as, evidence that Vallerius frequently accessed Dream Market.
Compared to a possible life sentence Vallerius feared prior to signing the plea agreement, 20 years in prison is relatively brief. If Vallerius serves the full 20 years, he will not be able to return to his wife in France until age 56. The announcement did not contain any information about a supervised release following prison. After countless court appearances, the United States’ case against Gal Vallerius has reached an end.
submitted by ThePharmaInitiative to DNMBusts [link] [comments]

Good news for the Dexes! Joint Statement on Broker-Dealer Custody of Digital Asset Securities

Source: https://www.finra.org/newsroom/2019/joint-statement-broker-dealer-custody-digital-asset-securities

Joint Statement on Broker-Dealer Custody of Digital Asset Securities

WASHINGTON – Market participants have raised questions concerning the application of the federal securities laws and the rules of the Financial Industry Regulatory Authority (“FINRA”) to the potential intermediation—including custody—of digital asset securities1 and transactions. In this statement, the staffs of the Division of Trading and Markets (the “Division”) and FINRA (collectively, the “Staffs”)—drawing upon key principles from their historic approach to broker-dealer regulation and investor protection—have articulated various considerations relevant to many of these questions, particularly under the SEC’s Customer Protection Rule applicable to SEC-registered broker-dealers.2
As a threshold matter, it should be recognized by market participants that the application of the federal securities laws, FINRA rules and other bodies of laws to digital assets, digital asset securities and related innovative technologies raise novel and complex regulatory and compliance questions and challenges. For example, and as discussed in more detail below, the ability of a broker-dealer to comply with aspects of the Customer Protection Rule is greatly facilitated by established laws and practices regarding the loss or theft of a security, that may not be available or effective in the case of certain digital assets.
The Staffs are aware of, and encourage and support, efforts to address these issues such that compliance with the Customer Protection Rule and other federal securities laws and FINRA rules is reasonably practicable. In recent months, the Staffs have been engaged with industry participants regarding how industry participants believe a particular custody solution for digital asset securities would meet the possession or control standards prescribed in the SEC’s Customer Protection Rule. The Staffs have found these discussions to be very informative and appreciate market participants’ ongoing engagement on these issues. The Staffs encourage and support innovation and look forward to continuing our dialogue as market participants work toward developing methodologies for establishing possession or control over customers’ digital asset securities. Contact information for Commission and FINRA staffs is provided at the end of this statement.
Importance of the Customer Protection Rule
Entities seeking to participate in the marketplace for digital asset securities must comply with the relevant securities laws.3 An entity that buys, sells, or otherwise transacts or is involved in effecting transactions in digital asset securities for customers or its own account is subject to the federal securities laws, and may be required to register with the Commission as a broker-dealer and become a member of and comply with the rules of a self-regulatory organization (“SRO”), which in most cases is FINRA. Importantly, if the entity is a broker-dealer, it must comply with broker-dealer financial responsibility rules,4 including, as applicable, custodial requirements under Rule 15c3-3 under the Securities Exchange Act of 1934 (the “Exchange Act”), which is known as the Customer Protection Rule.
The purpose of the Customer Protection Rule is to safeguard customer securities and funds held by a broker-dealer, to prevent investor loss or harm in the event of a broker-dealer’s failure, and to enhance the Commission’s ability to monitor and prevent unsound business practices. Put simply, the Customer Protection Rule requires broker-dealers to safeguard customer assets and to keep customer assets separate from the firm’s assets, thus increasing the likelihood that customers’ securities and cash can be returned to them in the event of the broker-dealer’s failure. The requirements of the Customer Protection Rule have produced a nearly fifty year track record5 of recovery for investors when their broker-dealers have failed. This record of protecting customer assets held in custody by broker-dealers stands in contrast to recent reports of cybertheft,6 and underscores the need to ensure broker-dealers’ robust protection of customer assets, including digital asset securities.
Various unregistered entities that intend to engage in broker-dealer activities involving digital asset securities are seeking to register with the Commission and have submitted New Membership Applications (“NMAs”) to FINRA. Additionally, various entities that are already registered broker-dealers and FINRA members are seeking to expand their businesses to include digital asset securities services and activities. Under FINRA rules, a firm is prohibited from materially changing its business operations (e.g., engaging in material digital asset securities activities for the first time) without FINRA’s prior approval of a Continuing Membership Application (“CMA”).7
The NMAs and CMAs currently before FINRA are diverse: Some of the NMAs and CMAs cover proposed business models that would not involve the broker-dealer engaging in custody of digital asset securities. On the other hand, some NMAs and CMAs include the custodying of digital asset securities, and therefore implicate the Customer Protection Rule, among other requirements.
Some of these entities have met with the Staffs to discuss how they propose to custody digital asset securities in order to comply with the broker-dealer financial responsibility rules. These discussions have been informative. The specific circumstances where a broker-dealer could custody digital asset securities in a manner that the Staffs believe would comply with the Customer Protection Rule remain under discussion, and the Staffs stand ready to continue to engage with entities pursuing this line of business.
Noncustodial Broker-Dealer Models for Digital Asset Securities
As noted, some entities contemplate engaging in broker-dealer activities involving digital asset securities that would not involve the broker-dealer engaging in custody functions. Generally speaking, noncustodial activities involving digital asset securities do not raise the same level of concern among the Staffs, provided that the relevant securities laws, SRO rules, and other legal and regulatory requirements are followed.8The following are examples of some of the business activities of this type that have been presented or described to the Staffs.
Considerations for Broker-Dealer Custody of Digital Asset Securities
Whether a security is paper or digital, the same fundamental elements of the broker-dealer financial responsibility rules apply. The Staffs acknowledge that market participants wishing to custody digital asset securities may find it challenging to comply with the broker-dealer financial responsibility rules without putting in place significant technological enhancements and solutions unique to digital asset securities. As the market, infrastructure, and law applicable to digital asset securities continue to develop, the Staffs will continue their constructive engagement with market participants and to gather additional information so that they may better respond to developments in the market10while advancing the missions of our respective organizations: for the SEC, to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation; and for FINRA, to provide investor protection and promote market integrity.
The Customer Protection Rule
Overview
A broker-dealer seeking to custody digital asset securities must comply with the Customer Protection Rule. As noted, the rule is designed principally to protect customers of a registered broker-dealer from losses and delays in accessing their securities and cash that can occur if the firm fails. The rule requires the broker-dealer to safeguard customer securities and cash entrusted to the firm, as discussed below. If the broker-dealer fails, customer securities and cash should be readily available to be returned to customers.11 In the event the broker-dealer were to be liquidated under SIPA, the SIPA trustee would be expected to step into the shoes of the broker-dealer and expected to be able to transfer, sell, or otherwise dispose of assets in accordance with SIPA.12
Among its core protections for customers, Rule 15c3-3 requires a broker-dealer to physically hold customers’ fully paid and excess margin securities or maintain them free of lien at a good control location.13 Generally, a broker-dealer may custody customer securities with a third-party custodian (e.g., the Depository Trust Company or a clearing bank),14 and uncertificated securities, such as mutual funds, may be held at the issuer or at the issuer’s transfer agent.15 In either case, there is a third party that controls the transfer of the securities. This traditional securities infrastructure (including, for example, related laws of property and security) also has processes to reverse or cancel mistaken or unauthorized transactions.
Considerations for Digital Asset Securities
There are many significant differences in the mechanics and risks associated with custodying traditional securities and digital asset securities. For instance, the manner in which digital asset securities are issued, held, and transferred may create greater risk that a broker-dealer maintaining custody of them could be victimized by fraud or theft, could lose a “private key” necessary to transfer a client’s digital asset securities, or could transfer a client’s digital asset securities to an unknown or unintended address without meaningful recourse to invalidate fraudulent transactions, recover or replace lost property, or correct errors. Consequently, a broker-dealer must consider how it can, in conformance with Rule 15c3-3, hold in possession or control digital asset securities.
In particular, a broker-dealer may face challenges in determining that it, or its third-party custodian, maintains custody of digital asset securities.16 If, for example, the broker-dealer holds a private key, it may be able to transfer such securities reflected on the blockchain or distributed ledger. However, the fact that a broker-dealer (or its third party custodian) maintains the private key may not be sufficient evidence by itself that the broker-dealer has exclusive control of the digital asset security (e.g., it may not be able to demonstrate that no other party has a copy of the private key and could transfer the digital asset security without the broker-dealer’s consent).17 In addition, the fact that the broker-dealer (or custodian) holds the private key may not be sufficient to allow it to reverse or cancel mistaken or unauthorized transactions. These risks could cause securities customers to suffer losses, with corresponding liabilities for the broker-dealer, imperiling the firm, its customers, and other creditors.
The Books and Records and Financial Reporting Rules
Overview
The broker-dealer recordkeeping and reporting rules18 require a broker-dealer, among other things, to make and keep current ledgers reflecting all assets and liabilities,19 as well as a securities record reflecting each security carried by the broker-dealer for its customers and all differences determined by the count of customer securities in the broker-dealer’s possession or control compared to the result of the count with the broker-dealer’s existing books and records.20 The financial responsibility rules also require that broker-dealers routinely prepare financial statements,21 including various supporting schedules particular to broker-dealers, such as Computation of Net Capital under Rule 15c3-1 and Information Relating to the Possession or Control Requirements under Rule 15c3-3 under the Exchange Act.22
The books, records, and financial reporting requirements are designed to ensure that a broker-dealer makes and maintains certain business records to assist the firm in accounting for its activities. These rules also assist securities regulators in examining for compliance with the federal securities laws and as such are an integral part of the financial responsibility program for broker-dealers.
Considerations for Digital Asset Securities
The nature of distributed ledger technology, as well as the characteristics associated with digital asset securities, may make it difficult for a broker-dealer to evidence the existence of digital asset securities for the purposes of the broker-dealer’s regulatory books, records, and financial statements, including supporting schedules. The broker-dealer’s difficulties in evidencing the existence of these digital asset securities may in turn create challenges for the broker-dealer’s independent auditor seeking to obtain sufficient appropriate audit evidence when testing management’s assertions in the financial statements during the annual broker-dealer audit.23 We understand that some firms are considering the use of distributed ledger technology with features designed to enable firms to meet recordkeeping obligations and facilitate prompt verification of digital asset security positions (e.g., regulatory nodes or permissioned distributed ledger technologies). Broker-dealers should consider how the nature of the technology may impact their ability to comply with the broker-dealer recordkeeping and reporting rules.
Securities Investor Protection Act of 1970
Overview
Generally, a broker-dealer that fails and is unable to return the customer property that it holds would be liquidated in accordance with SIPA. Under SIPA, securities customers have a first priority claim to cash and securities held by the firm for securities customers. Customers also are eligible for up to $500,000 in protection (of which up to $250,000 can be used for cash claims) if the broker-dealer is missing customer assets. These SIPA protections apply to a “security” as defined in SIPA and cash deposited with the broker-dealer for the purpose of purchasing securities.24 They do not apply to other types of assets, including, importantly, assets that are securities under the federal securities laws but are excluded from the definition of “security” under SIPA.25
Considerations for Digital Asset Securities
In the case of a digital asset security that does not meet the definition of “security” under SIPA, and in the event of the failure of a carrying broker-dealer, SIPA protection likely would not apply and holders of those digital asset securities would have only unsecured general creditor claims against the broker-dealer’s estate.26 Further, uncertainty regarding when and whether a broker-dealer holds a digital asset security in its possession or control creates greater risk for customers that their securities will not be able to be returned in the event of a broker-dealer failure.27 The Staffs believe that such potential outcomes are likely to be inconsistent with the expectations of persons who would use a broker-dealer to custody their digital asset securities.
Control Location Applications
As a related matter, the Staffs have received inquiries from broker-dealers, including ATSs, wishing to utilize an issuer or transfer agent as a proposed “control location” for purposes of the possession or control requirements under the Customer Protection Rule. As described to the Staffs, this would involve uncertificated securities where the issuer or a transfer agent maintains a traditional single master security holder list, but also publishes as a courtesy the ownership record using distributed ledger technology. While the issuer or transfer agent may publish the distributed ledger, in these examples, the broker-dealers have asserted that the distributed ledger is not the authoritative record of share ownership. To the extent a broker-dealer contemplates an arrangement of this type, the Division will consider whether the issuer or the transfer agent can be considered a satisfactory control location pursuant to an application under paragraph (c)(7) of Rule 15c3-3.28
As noted, the Staffs encourage and support innovation in the securities markets and look forward to continuing to engage with investors and industry participants as the marketplace for digital asset securities develops. To contact Commission staff for assistance, please visit the Commission’s FinHub webpage or contact Thomas K. McGowan, Associate Director, at (202) 551-5521 or Raymond Lombardo, Assistant Director, at (202) 551-5755. To contact FINRA staff for assistance, please visit FINRA’s FinTech webpage or contact Kosha Dalal, Associate Vice President and Associate General Counsel, FINRA, (202) 728-6903.
1 For the purposes of this statement, the term “digital asset” refers to an asset that is issued and transferred using distributed ledger or blockchain technology, including, but not limited to, so-called “virtual currencies,” “coins,” and “tokens.” A digital asset may or may not meet the definition of a “security” under the federal securities laws. For the purposes of this statement, a digital asset that is a security is referred to as a “digital asset security.”
2 This statement represents staff views of the Division of Trading and Markets and FINRA. This statement is not a rule, regulation, guidance, or statement of the U.S. Securities and Exchange Commission (“SEC” or “Commission”) or FINRA, and the Commission and FINRA’s Board have neither approved nor disapproved its content. This statement does not alter or amend applicable law and has no legal force or effect.
3 For purposes of this statement, the Staffs use the term “entities” to refer to both firms and individuals.
4 The financial responsibility rules include Rule 15c3-1 (the net capital rule), Rule 15c3-3 (the customer protection rule), Rule 17a-3 (the record making rule), Rule 17a-4 (the record retention rule), Rule 17a-5 (the financial reporting rule), and Rule 17a-13 (the quarterly securities count rule) under the Securities Exchange Act of 1934 (“Exchange Act”). This statement does not address all federal securities laws that may be implicated by a broker-dealer seeking to maintain custody of digital asset securities. Further, this statement does not address other securities laws or rules that may apply to digital asset securities.
5 Rule 15c3-3 was adopted by the Commission in 1972. See Broker-Dealers; Maintenance of Certain Basic Reserves, Exchange Act Release No. 9856 (Nov. 10, 1972), 37 Fed. Reg. 25224 (Nov. 29, 1972).
6 For example, one blockchain forensic analysis firm estimated that approximately $1.7 billion worth of bitcoin and other digital assets had been stolen in 2018, of which approximately $950 million resulted from cyberattacks on bitcoin trading platforms. The estimate of total losses in 2018 is 3.6 times higher than the estimate of such losses in 2017. See CipherTrace, Cryptocurrency Anti-Money Laundering Report, 2018 Q4, at 3 (Jan. 2019) (available at: https://ciphertrace.com/crypto-aml-report-2018q4/).
7 Firms can discuss with FINRA whether a contemplated change in business operations such as engaging in digital asset securities activities may require the filing of a CMA through the materiality consultation process.
8 These business models and transactions must comply with other provisions of the securities laws or regulations. The Staffs offer no views about whether such business models would be in compliance with other securities laws or regulations.
9 Entities that perform functions to facilitate the clearance and settlement of transactions in digital asset securities may be required to register as a clearing agency under Section 17A of the Exchange Act. See 15 U.S.C. 78q-1.
10 See, e.g., Statement on Digital Asset Securities Issuance and Trading, Division of Corporation Finance, Division of Investment Management, and Division of Trading and Markets, Commission (Nov. 16, 2018) (available at: https://www.sec.gov/news/public-statement/digital-asset-securites-issuuance-and-trading); see also e.g., Engaging on Non-DVP Custodial Practices and Digital Assets, letter issued by staff, Division of Investment Management, Commission, dated Mar. 12, 2019 (available at: https://www.sec.gov/investment/engaging-non-dvp-custodial-practices-and-digital-assets).
11 See Financial Responsibility Rules for Broker-Dealers, Exchange Act Release No. 70072 (July 30, 2013), 78 Fed. Reg. 51824, 51826 (Aug. 21, 2013). In addition, if the broker-dealer is liquidated in a formal proceeding under the Securities Investor Protection Act of 1970 (“SIPA”), the securities and cash held by the broker-dealer for its customers would be isolated and readily identifiable as “customer property” and, consequently, available to be distributed to customers ahead of other creditors. Id.
12 See 15 U.S.C. 78fff-1 (setting forth the powers and duties of a SIPA trustee).
13 See paragraphs (b) and (c) of Rule 15c3-3. An entity’s designation as a good control location is based, in part, on its ability to maintain exclusive control over customer securities. See, e.g., paragraph (c)(5) of Rule 15c3-3 (deeming a “bank” as defined in Section 3(a)(6) of the Exchange Act to be a good control location so long as, among other things, the bank has acknowledged that customer securities “are not subject to any right, charge, security interest, lien or claim of any kind in favor of a bank or any person claiming through the bank” and the securities are in the custody or control of the bank).
14 See paragraphs (c)(1) and (c)(5) of Rule 15c3-3.
15 The Commission often receives applications under paragraph (c)(7) of Rule 15c3-3 to designate an issuer or the transfer agent of various types of uncertificated securities as a control location. The Division has delegated authority to “find and designate as control locations for purposes of Rule 15c3-3(c)(7) [under the Exchange Act] certain broker-dealer accounts which are adequate for the protection of customer securities.” See 17 CFR 200.30-3(a)(10)(i). The Commission has stated that mutual funds in particular may be held at the issuer or the issuer’s transfer agent. See, e.g., Broker-Dealer Reports, Exchange Act Release No. 70073 (July 30, 2013), 78 Fed. Reg. 51910, 51951 (Aug. 21, 2013) (stating that “[g]enerally, mutual funds issue securities only in book-entry form. This means that the ownership of securities is not reflected on a certificate that can be transferred but rather through a journal entry on the books of the issuer maintained by the issuer’s transfer agent. A broker-dealer that holds mutual funds for customers generally holds them in the broker-dealer’s name on the books of the mutual fund”). See also Form Custody for Broker-Dealers, 17 CFR 249.639 (providing broker-dealers with a field to indicate that they custody mutual fund securities with a transfer agent). The Division has also previously issued no-action letters regarding the maintenance of certain other uncertificated securities at the transfer agent. See, e.g., letter to Fantex Brokerage Services, LLC from Mark M. Attar, Senior Special Counsel, Division of Trading and Markets, Commission, dated Dec. 19, 2014 (providing that the staff would not recommend enforcement action if a broker-dealer treats a transfer agent for uncertificated securities as a good control location, under certain circumstances). These prior no-action letters do not address whether blockchain or distributed ledger technology, in connection with the maintenance of the single master security holder list, establishes control of uncertificated securities by the issuer (or transfer agent).
16 See, e.g., paragraph (d) of Rule 15c3-3 (requiring that, not later than the next business day, a broker-dealer, as of the close of the preceding business day, shall determine the quantity of fully paid securities and excess margin securities in its possession or control and the quantity of such securities not in its possession or control).
17 Cf. supra note 13.
18 See generally Rules 17a-3, 17a-4, and 17a-5.
19 See paragraph (a)(2) of Rule 17a-3.
20 See paragraph (a)(5) of Rule 17a-3.
21 See generally Rule 17a-5.
22 See paragraph (d)(2)(ii) of Rule 17a-5.
23 See generally PCAOB Auditing Standard 1105, Audit Evidence (describing sufficient appropriate audit evidence and stating that audit evidence consists of information that supports and corroborates management’s assertions regarding the financial statements and information that contradicts such assertions).
24 The SIPA definition of “security” is different than the federal securities laws definitions. See 15 U.S.C. 78lll(14) (excluding from the SIPA definition of “security” an investment contract or interest that is not the subject of a registration statement with the Commission pursuant to the provisions of the Securities Act of 1933). This means there may be digital assets that are: (1) securities under the federal securities laws and SIPA, and thus are protected by SIPA; (2) securities under the federal securities laws, but not under SIPA, and thus not protected by SIPA; or (3) not securities under the federal securities laws and therefore not protected by SIPA.
25 If a broker-dealer holds securities that are not protected by SIPA, the broker-dealer must nevertheless comply with the physical possession or control requirements under Rule 15c3-3 with respect to those securities.
26 Generally, in a SIPA liquidation, assets not included in customer property (other than customer name securities) are liquidated and paid out to general creditors on a pro rata basis. See 15 U.S.C. 78fff-2(c); 15 U.S.C. 78fff(b).
27 See supra note 16.
28 See paragraph (c)(7) of Rule 15c3-3.
submitted by godsslave to CryptoCurrency [link] [comments]

US Bitcoin traders who identify as users are under siege. Do you have the same issue in your country?

As a bitcoin trader myself, I follow all the news of us trader arrests. These fall into two categories. First, the user did something otherwise unlawful such as trafficking drugs or committing money laundering and was charged with "operating an unlicensed money servicing business" and "conspiracy for agreeing to distribute controlled dangerous substances". In these types of cases I agree that the user should be punished for conspiracy to distribute drugs and money laundering. The second type of case that is becoming far more prevalent now is where the bitcoin user has simply made sales and purchases of bitcoin for his or her own account. These users are still charged with "Operating an unlicensed money services business."
This I do not agree with at all because FIN-2008-G008 declared that "When a broker or dealer in currency or other commodities accepts and transmits funds solely for the purpose of effecting a bona fide purchase or sale of currency or other commodities for or with a customer, such person is not engaged as a business in the transfer of funds, and is not acting as a money transmitter as that term is defined in our regulations.8 In such circumstances, the transmission of funds is a fundamental element of the actual transaction necessary to execute the contract for the purchase or sale of the currency or the other commodity. The transmission of funds is not a separate and discrete service provided in addition to the underlying transaction. It is a necessary and integral part of the transaction."
This determination was reiterated in subsequent guidance FIN-2013-G001 & response FIN-2014-R002. Simply put a bitcoin user who only purchases or sells bitcoin of his own account to or from a customer is not a money transmitter.
Most simple bitcoin traders operate under this guidance and are simply flabbergasted when confronted with charges for operating an "unlicensed money services business" or "operating an unlicensed bitcoin exchange". When the government makes their case the conveniently only quote the portion of the rule that states " An exchanger is a person engaged as a business in theexchange of virtual currency for real currency, funds, or other virtual currency". [FIN-2013-G001] Except that it is clearly explained in FIN-2008-G008 that "When a broker or dealer in currency or other commodities accepts and transmits funds solely for the purpose of effecting a bona fide purchase or sale of currency or other commodities for or with a customer, such person is not engaged as a business in the transfer of funds, and is not acting as a money transmitter as that term is defined in our regulations." This is carried forward and reiterated in FIN-2013-G001 where it states "In 2008, FinCEN issued guidance stating that as long as a broker or dealer in real currency or other commodities accepts and transmits funds solely for the purpose of effecting a bona fide purchase or sale of the real currency or other commodities for or with a customer, such person is not acting as a money transmitter under the regulations. However, if the broker or dealer transfers funds between a customer and a third party that is not part of the currency or commodity transaction, such transmission of funds is no longer a fundamental element of the actual transaction necessary to execute the contract for the purchase or sale of the currency or the other commodity. This scenario is, therefore, money transmission. Examples include, in part, (1) the transfer of funds between a customer and a third party by permitting a third party to fund a customer’s account; (2) the transfer of value from a customer’s currency or commodity position to the account of another customer; or (3) the closing out of a customer’s currency or commodity position, with a transfer of proceeds to a third party. Since the definition of a money transmitter does not differentiate between real currencies and convertible virtual currencies, the same rules apply to brokers and dealers of e-currency and e-precious metals.
A simple way to think about the definition of a money transmitter is that a money transmitter typically collects funds from one customer and transmits those funds to another customer via its agents in a remote location. So A western Union agent for example collects $100 from Bob Smith in Iowa and deposits this money into its Bank of America Account. Peggy Sue in Ohio goes to a western union agent where the agent prints out a check from western union or gets an ach credit into its business checking account from Bank of America and pays out a portion of the received funds to Peggy Sue. Western Union is transmitting money by accepting it from agent A and transmitting it to agent B for further credit to Peggy Sue. So let's think about this in terms of bitcoin. Bitcoin is a centralized ledger of funds for each public key or "account". If I have 0.05 bitcoin in account 1001 and I want to pay my landlord 0.05 bitcoin rent,I send the bitcoin to account 1002. All this does is make a notation on the blockchain that account 1001 now has 0 bitcoin and account 1002 now has 0.05 bitcoin. This is simplified a bit so you programmers out there don't cringe over the details of constructing a bitcoin transaction, inputs, and outputs. Suffice it to say, that sending my landlord who is standing next to me, 0.05 bitcoin, does not make me a money transmitter any more than paying him with my VISA card. In fact in both cases we could consider VISA or bitcoin a money transmitter since they take funds from person A and transmit them to person B via their agents. In VISA's case the party's banks are the agents, while in bitcoin's example the agents could be the wallet program on each phone or computer that reads the person's wallet or account balance.
Circle back to our friendly traders under siege. No, not the criminals slinging drugs, they knowingly committed their actions. I'm speaking about the bitcoin users, only selling or purchasing bitcoins from their own account to or from a customer. These traders haven't committed an offenses at all according to fincen's directions. What does the government do? Do they engage in a public information campaign to inform these traders of their rights and responsibilities? Do they create a new MSB category for digital currency and define rules and responsibilities for a virtual currency trader? No, instead they try to mislead traders in these cases where a secondary offense such as drug trafficking hasn't been committed. "You have got to be kidding me. Right?" No, I'm really not. If you start reading into these cases you'll find literally hundreds of examples of agents encouraging traders to send bitcoin to a trader in Africa for example so that trader can disburse local currency to a friend. Agents buying bitcoin for less than $10,000 USD without ID and considering this illegal behavior in the indictment! Remember a user doesn't need to report any transaction unless it exceeds $10,000 USD if it is part of his trade or business. If an auto worker who is a casual user that only trades bitcoin 3 times a year sold his for Christmas money to a friend, he wouldn't even need to report the $15,000 sale. But most traders who trade on a daily basis or do it for a living will need to file either an IRS 8300 or a Fincen CTR. Such agents who approach these casual traders entice them with inflated rates and use such phrases as "I'm going to make you rich!'". And they often ask questions about limits and regulations that don't apply to the bitcoin user. They consider all responses as violations of the money transmitter regulations that aren't supposed to apply.
So what is a trader to do? You have two choices. You can follow the law literally as most have done and have countless agents come and test you...and then worry about being arrested on charges that don't even apply to you except when acting unlawfully when strongly encouraged or even elicited under duress in some cases by government agents. Or you can falsely claim you are a money transmitter and follow those rules.
On my own personal journey I decided in October of 2014 to register with Fincen because I saw that one of my suppliers had done so on his website. I asked him about it and he said it was a precautionary measure. I asked around and I was told by many that I had to select money transmitter and other and write in bitcoin trader because there was no selection for bitcoin trader. This in spite of not being a money transmitter. After I had registered I received a call from a man in "Internal Revenue" in Boston about my registration. He asked me about my bitcoin trading and then he said he had to consult with a supervisor. About 15 minutes later he returned my call and told me, "You are not a money transmitter, so I don't need anything from you." A couple months after that, I received a call from Key Bank's compliance office in Cleveland. They had detected my registration as a money transmitter with Fincen and wanted to ask me a few questions. After questioning me, the lady told me that she previously worked for fincen and that I was not an MSB. Key bank had me sign an affidavit that I wouldn't perform any money services businesses activities such as cashing checks for profit, transmitting money, issue money orders, or create gift cards. This compliance officer understood that I was not an exchange in any way and that I only purchased and sold bitcoin of my own account. She understood I didn't hold funds for customers to trade with each other of their own accord like Bitstamp, Kraken, or Gemini.
In the years that would follow, I would have many bank accounts shut down due to this registration as a money transmitter. Most banks simply looked and said, you are a money transmitter. After all, you registered as one. I called Ficen and asked if I could un-register. "No, you cannot". The banks wouldn't even listen to the facts and make a decision. The only other business to actually study my investment model and grant me user status was Gemini. They also agreed I was a user. I think years later they came under pressure to terminate all localbitcoins accounts because many were terminated and at the end of those, mine was too. Was it a coincidence? Or could one of my customers have sabotaged me? It is possible for a user to lie about his wallet address and give out one belonging to a site such as Alphabay. I had one customer do this to me when I was selling him coin from Alphabay. Coinbase questioned me about the transaction and I informed them that someone I was sending money give that wallet out as his own. They reinstated my account since I had years of history with them and it was only one transaction. After that I was careful not to send to customer wallets directly from coinbase. I guess my point is here, if you don't register as a money transmitter they want to harass and prosecute you; but if you do register as a money transmitter they still want to harass and shut down your business. I have recently been engaged in conversations with Fincen by email and by phone and other traders. I haven't been able to speak with many compliance people who are knowledgeable about bitcoin. When I do, for example I've spoken with BitAML on this subject, they agree with me about being a user as a trader. Other compliance people won't even answer my emails or call me back. Now I'm on the verge of either retiring or going the whole money transmitter route and even following the $3,000 ID requirement that only applies to money orders, traveler's checks, and money transfers, but not virtual currency. So my question to you is, do you have the same kinds of problems in your country? Is it better, or worse where you are? Tell me your stories. From my perspective now at least, it seems like the USA has the most malfeasance and harassment of the simple bitcoin traders, excluding those who commit crimes.
Thanks for reading
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The Collective

The COLLECTIVE comprises of five noteworthy gatherings which will be clarified by me in the blink of an eye, this system is a Guernsey-based fintech organization that includes of various working items. There are five existing items on the #collective system to be specific: the Collective network organization, the tradeone incorporated trade, the decentralized trade, collectivego digital game, and the group worldwide activity.
The previously mentioned will all be driven by the COMMUNITY DEVELOPMENT EXCHANGE TOKEN #CDEX. It will fill in as the main impetus of the #collective in which the whole system will work with. The utilization of CDEX tokens has loads of advantages and use cases for clients of the stage.
TRADEONE CENTRALIZED EXCHANGE
Tradeone unified trade is the place trade clients get a half markdown (50 %) charge on administration expenses paid in #cdex tokens, a steadfastness reward will likewise be made accessible to visit clients on a proportion 1:1 premise. Utilizing the inherent trade on the COLLECTIVE will guarantee various advantages for its clients.

tradeone trade was made to suit a wide range of cryptographic money running from Bitcoin, Ethereum, Litecoin, EOS, Stellar, Erc-20 consistent tokens and all others. It is a verified, consistent, quick, solid, adaptable digital cash trade fit for executing more than 10,000 exchanges for every second. Tradeone offers a simple to explore interface, sufficient liquidity, influence and above all low spreads between the purchase and move orders.

COLLECTIVE COMMUNITY COMPANY
The COLLECTIVE people group offers a network the board administration for digital money organizations, and they will give a top of the line esteemed administrations to their customers. They will give every minute of every day client care administration support, advise their customers about the most recent market data, give thoughts that will be gainful for their customers.
They will help make web based life attention to haul in the required consideration for their customer, by and by the most ideal approach to make mindfulness is to grandstand your business on the web. Internet based life has conveyed a great deal of battling organizations to the spotlight. Collective additionally have the required convention to oversee abundance programs, sort out meetups, rivalries, advancements, and numerous different mindfulness techniques.
DECENTRALIZED EXCHANGE
This part of the #collective environment interfaces purchasers and merchants in a single space, traders exchange peer-to-peer (P2P) without the need of delegates (mediators). There is no need of KYC (know your customer.) and AML (Anti Money Laundering) checks, covering of dealers, low charges, and above all an abnormal state of security.
Ethereum based tokens will be the main tokens accessible on the #dex, in view of its decentralized nature clients won't need to enroll or store their private keys on the dex, they will almost certainly interface diverse kinds of wallets upheld by the COLLECTIVE ecosystem, a portion of these bolstered wallets incorporates MyEtherWallet, MyCrypto, MetaMask, Ledger and so on.
FOR MORE INFORMATION, NEWS & UPDATES VISIT THE COLLECTIVE OFFICIAL LINKS:
WEBSITE: https://thecollectivegroup.org/
WHITEPAPER: https://www.thecollectivegroup.org/ico/WP_Collective.pdf
ARTICLE PUBLISHED BY MICKEY OBERABOR BOUNTY0X USERNAME: MICKEYBERRY1
submitted by Mickeyberry to ICOAnalysis [link] [comments]

Review Of The Collective

The COLLECTIVE is made-up of five noteworthy sectors which will be clarified by me in the blink of an eye, this system is a Guernsey-based fintech organization that envelops of various working items. There are five existing items on the collective network to be specific: the aggregate community organization, the tradeone unified exchange, the decentralized exchange, collectivego computer game, and the group worldwide activity.
The previously mentioned will all be driven by the COMMUNITY DEVELOPMENT EXCHANGE TOKEN CDEX. It will fill in as the main thrust of the #collective in which the whole system will work with. The utilization of CDEX tokens has bunches of advantages and use cases for clients of the platform.
Collective Community Company
The COLLECTIVE community offers the community the executives administration for cryptocurrency organizations, and they will give a top of the line esteemed administrations to their customers. They will give all day, every day client care administration support, advise their customers about the most recent market data, give thoughts that will be productive for their customers.
They will help make social networks attention to haul in the required consideration for their customer, by and by the most ideal approach to make mindfulness is to advertise your business on the web. Online marketing has conveyed a ton of battling organizations to the spotlight. Collective additionally have the required protocol to oversee abundance programs, arrange meetups, rivalries, advancements, and numerous different mindfulness systems.
TRADEONE Centralized Exchange
Tradeone unified exchange is the place exchange clients get a half markdown charge on administration expenses paid in cdex tokens, a reliability reward will likewise be made accessible to visit clients on a proportion 1:1 premise. Utilizing the inherent exchange on the COLLECTIVE will guarantee various advantages for its clients.
Tradeone exchange was made to oblige a wide range of cryptocurrency extending from Bitcoin, Ethereum, Litecoin, EOS, Stellar, Erc-20 agreeable tokens and all others. It is a verified, consistent, quick, solid, adaptable digital currency exchange fit for executing more than 10,000 exchanges for every second. Tradeone offers a simple to explore interface, sufficient liquidity, influence and above all low spreads between the purchase and move orders.
Decentralized Exchange
This part of the collective ecosystem associates purchasers and merchants in a single space, dealers exchange shared (P2P) without the need of mediators (go betweens). There is no need of KYC (know your client.) and AML (against money laundering) checks, camouflage of merchants, low expenses, and in particular an abnormal state of security.
Ethereum based tokens will be the main tokens accessible on the #dex, on account of its decentralized nature clients won't need to enroll or store their private keys on the dex, they will most likely connection diverse sorts of wallets bolstered by the COLLECTIVE platform, a portion of these upheld wallets incorporates MyEtherWallet, MyCrypto, MetaMask, Ledger and so on.
Collectivego Game
The #collectivego computer game is the place amusement sweethearts can get boosted doing what they cherish which is playing computer games, gamers will appreciate gaming on the platform since it has VR (augmented reality) usefulness which makes them feel like they're inside the diversion and recreations from best recreations engineers will be made accessible on the platform.
Tokens utilized for boosting gamers will be held in the escrow to ensure they get their prizes toward the day's end, and gamers should interface their wallets to the COLLECTIVE Network to guarantee a smooth exchange of funds to their ideal wallets. Publicists are not forgotten; they can promote inside the amusement utilizing #cdex tokens.
Collective Global Initiative
This part of collective ecosystem involves of all functionalities on the COLLECTIVE ecosystem, it offers an across the board arrangement. They plan to give an agreeable environment to any enrolled customer to concentrate on making a working item. They will interface organizations with a similar objective for them to probably team up.
The collective system will upgrade correspondence and trustworthy collaborations between enlisted foundations, every single enrolled customer will be treated with most extreme appreciation and dedication. This will, thusly, make and uncover loads of business thoughts.
For further information, visit https://www.thecollectivegroup.org/ico/
Bounty0x Username: Phlaser247
submitted by Phlaser247 to ICOAnalysis [link] [comments]

Stablecoin Based on Bytom (BTM) – Some Thoughts

Stablecoin Based on Bytom (BTM) – Some Thoughts
In the recent Bytom Global Dev Competition, some stablecoin projects have been seen. It is no surprise as stablecoin has been really a buzzword in the recent crypto market, and these projects are mulling over stablecoins based on Bytom Blockchain.
Stablecoins have been embroiled in controversies and they have been dissected and studied by some of the smartest minds in the cryptospace. This article is going to do a deep dive on the buzzword stablecoin and visons about its design on Bytom.
What is Stablecoin?
The creation and development of stablecoins have a complicated history. We think it’s not necessary to present all of them, but it will be more interesting to introduce the concept with a short story.
A primary school student named Leek would get some pocket money from his dad every day, while his dad did not allow him to use the money to play online games in internet cafés. Leek then came up with the idea that to use cigarettes as payment for internet access fees since the internet café owner likes smoking, and the owner agreed. The owner of the internet café later opened a cigarette store after realizing that lots of pupils used cigarette as their internet access fees, and announced only cigarettes bought from this store were accepted by his internet café. The business went quite well and seeing this, many cigarette shops were opened to sell cigarette to pupils. Though they tried hard to tout their products, they were not welcomed as they were not accepted by the internet café. Things began to change when Leek’s father found out all this. He reported the shop and asked local authority to strengthen regulations on it. To respond to that, the cigarette shop owner tried his best to win regulatory support and figured out an “acceptance dealer system” which allowed a few pupils to buy cigarettes in bulk and resell it to others. The internet café also opened a special transaction counter for the convenience of selling and buying among those pupils and charged some commission fee for it.
The story stops here and let’s change the roles in it. In the cryptospace, Leek is those crypto investors, Leek’s father is the government, the internet café is those crypto exchanges like BitFinex and Gateio, the cigarette store is the issuer of stablecoin like Tether, and then cigarette is the stablecoin such as USDT or GUSD. Now we may have a basic understanding about the necessity and importance of stablecoins.
The value of the stablecoin at the current stage is mainly to act as a means of payment other than legal tender, to enable the transaction of cryptocurrency in situations where fiat money is not allowed. Created out of the market demand and regulations, stablecoins in itself can become a tool to accumulate wealth, and their issuers and crypto exchanges are going to benefit the most. In this aspect, government shall regulate the crypto market starting from the regulation on stablecoins.
Some expressed their concerns that dollar-backed stablecoins may have great impact on the international monetary and financial system; while in my view it is a gross exaggeration. Data shows that, USDT, which accounts for 87.33 percent of the stablecoin market share, currently has a market value of only $2.8 billion, with 24-hour trading volume at $3.3 billion (according to data collected from CoinMarketCap.com on Sep.26, 2018). For another, the international monetary and financial system is quite huge, compared to the $83.6 trillion in national money supply (according to HowMuch.net), the impact of the USDT on the monetary system is almost negligible. So at present, the impact of stablecoins is mainly confined to the cryptocurrency market.
Visions about Stablecoin
Following are some thoughts about stablecoin. First, a country can issue a stablecoin as a regulatory tool and see it as an exploration of digital currency; or explore the possibility of crypto-collateralized stablecoins.
  1. State-issued stablecoin
A majority of the current stablecoins were issued by private individuals, but it is not ruled out that there will be stablecoins issued by a state in the future. If a stablecoin pegged to a certain legal tender (such as U.S. dollar and Chinese Yuan) is issued directly by a state, it would be truly stable. This kind of stablecoin is born with natural stability and the main concern about it is whether it will be accepted and massively adopted from the commercial aspect.
Imagine if a country uses a stablecoin as a regulatory means with KYC (Know Your Customer) and AML (Anti-Money Laundering) regimes, it will be a gateway for the entire crypto market and the crypto market will be more controllable. The country will be able to know how new money flows into the crypto market. At the same time, the relationship between stablecoins and the existing fiat money can be eased. In this context, if a state-issued stablecoin is only to meet the demand of the crypto market, it will have no conflict with the existing monetary system.
2.BTC-collateralized stablecoin
Most current stablecoins are pegged to physical assets such as U.S. dollar. In the future, there may be currencies anchoring cryptos or tokens like bitcoin – some countries may issue fiat money backed by bitcoin. It’s a counterintuitive prediction because intuition tells us that bitcoin is a volatile asset. But I think it is exactly a trend in the future, a significant step for the crypto world to influence the atomic world.
Actually it’s not absolutely impossible. For one reason, more and more people want to fight against inflation via cryptocurrencies, especially those in Iran, Turkey, Venezuela, Argentina and Zimbabwe, suffering from economic and currency crises; for another, the fluctuation of bitcoin price has been seen the decrease at an annual rate of 25% since 2010.

Bitcoin price volatility has been decreasing year by year (according to highchars.com)
It is expectable that bitcoin would be a stable cryptocurrency in the far future. But why not directly use bitcoin as a payment means? As some users may still tend to use their own fiat money, and problems like congestion may emerge large on the bitcoin network along with the large volume transactions in the future. While the maturity of sidechain technologies could make stablecoin more advantageous. Therefore, there may come up a BTC-backed stablecoin.
How to Create a Good Stablecoin?
First of all, we need to get straight the function of a stablecoin. At present, stablecoins are a patch affiliated to traditional currencies to address specific problems in a certain sector. Precisely we should call stablecoin “pegged coin”, as the value of a stablecoin is not that stable but fluctuates with the price of the peg. Stablecoin have to accomplish two “leaps” to achieve the practical goal as a popular stablecoin.
The first leap is to technically achieve anchoring to real-world assets, by building reserve mechanism, algorithm regulation and interest rate adjustment. There have been many articles about the stablecoin mechanism. I will not go into details here, but recommend A History of Stablecoins to you. In summary, it mainly focuses on “decentralization”, “usability”, “stability”.
Centralized stablecoins like USDT are easy to use and stable, but lack in decentralization. Decentralized stablecoins, such as BitUSD (a crypto-collateralized stablecoin), are featured by a high degree of decentralization, but its stability is greatly affected by fluctuations of the collateral.
The second leap is to commercially achieve mass adoption. Only when a stablecoin is widely adopted, could it have values. Currently stablecoins faces the influence from government policies, acceptance of exchanges, the prosperity of C2C (customer-to-customer transaction) market and other commercial factors.
Stablecoins Based on Bytom
Bytom is a public blockchain dedicated to asset blockchainization, and stablecoins are in fact a part of the blockchainization of “currency” asset. Stablecoins based on Bytom will have three advantages:
  1. Based on the BUTXO model (Bytom Unspent Transaction Output) and sidechain
  2. Based on the system of asset blockchainization
  3. Based on the national cryptographic standards
  4. Based on the BUTXO model (Bytom Unspent Transaction Output) and sidechain. The UTXO (Unspent Transaction Output) model is the underlying data structure of bitcoin blockchain, featured by safety, stability and extensibility. However, the current stablecoins market is overwhelmed with tokens based on the account model of Ethereum, lacking stablecoins based on UTXO architecture. In my view, the model architecture based on UTXO is the future trend, because the tokens with asset attributes, especially stablecoins, require the most secure data storage structure. The decade bitcoin being around is a decade of tremendous stability and security, and a stablecoin based on the UTXO model will also have this trait. Bytom’s extended UTXO architecture can unify all kinds of stablecoins into a blockchain. As you can imagine, stablecoins backed by U.S. dollar, Japanese yen, Hong Kong dollar and euro can all be on a public chain.

A stablecoin system based on BUTXO
  1. Based on the system of asset blockchainization. Asset blockchainization is a systematic job as we elaborated in the serial articles.

Six major systems of asset blockchainization
Taking the onchain identity system for example, there must be an identity system behind stablecoins. Imagine we have a Chinese yuan-pegged stablecoin, when we obtain all accounts related to CNY, we need to go through the procedures of KYC (Know Your Customer) and AML (Anti-Money Laundering). However, the account system on blockchain is mostly based on public key or private key, so it needs to build a layer of account system on the top layer to match that of the real world. By building tools such as distributed identity and blockchain contract, Bytom builds an identity system on the blockchain to provide underlying support for the stablecoin. This is also something that most underlying public chains cannot make or have not focused on.
  1. Based on the “national cryptographic standard”. In the narrow sense, the national cryptographic standard refers to “the public-key cryptography algorithm 2 based on M2 elliptic curve and SM3 cryptography hashing algorithm 3”, two pieces of standards deemed as domestic cryptography algorithm by the State Bureau of Cryptography Administration. It will enable Bytom to be friendly to domestic standards in terms of security. Broadly defined, the national cryptographic standard means that Bytom is a public chain protocol with Chinese elements. In the exploration for the development of state-issued digital currency and the creation of a stablecoin, we need to take Chinese elements into consideration. After all, codes have no national boundary, but the currency has its nationality.
Translated from基于比原谈稳定币by Ma Qianli, vice president of 8btc News, responsible for the scenario realization of asset migrating onto Bytom Blockchain. Having competitive capability in IPO, M&A and asset securitization with many successful cases, Qianli was the director of investment banking arm in Codi Capital, and securities affairs representative of vöhringer after graduating from Shanghai University of Finance and Economics.
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The COLLECTIVE - COMMUNITY DEVELOPMENT EXCHANGE

The COLLECTIVE - COMMUNITY DEVELOPMENT EXCHANGE
https://preview.redd.it/tt87i36caxi21.png?width=1105&format=png&auto=webp&s=d7994c6ddf9e14fdd739279053b93669f051c02b
The COLLECTIVE is made-up of five noteworthy sectors which will be clarified by me in the blink of an eye, this system is a Guernsey-based fintech organization that envelops of various working items. There are five existing items on the collective network to be specific: the aggregate community organization, the tradeone unified exchange, the decentralized exchange, collectivego computer game, and the group worldwide activity.
The previously mentioned will all be driven by the COMMUNITY DEVELOPMENT EXCHANGE TOKEN CDEX. It will fill in as the main thrust of the #collective in which the whole system will work with. The utilization of CDEX tokens has bunches of advantages and use cases for clients of the platform.
Collective Community Company
The COLLECTIVE community offers the community the executives administration for cryptocurrency organizations, and they will give a top of the line esteemed administrations to their customers. They will give all day, every day client care administration support, advise their customers about the most recent market data, give thoughts that will be productive for their customers.
They will help make social networks attention to haul in the required consideration for their customer, by and by the most ideal approach to make mindfulness is to advertise your business on the web. Online marketing has conveyed a ton of battling organizations to the spotlight. Collective additionally have the required protocol to oversee abundance programs, arrange meetups, rivalries, advancements, and numerous different mindfulness systems.
TRADEONE Centralized Exchange
Tradeone unified exchange is the place exchange clients get a half markdown charge on administration expenses paid in cdex tokens, a reliability reward will likewise be made accessible to visit clients on a proportion 1:1 premise. Utilizing the inherent exchange on the COLLECTIVE will guarantee various advantages for its clients.
Tradeone exchange was made to oblige a wide range of cryptocurrency extending from Bitcoin, Ethereum, Litecoin, EOS, Stellar, Erc-20 agreeable tokens and all others. It is a verified, consistent, quick, solid, adaptable digital currency exchange fit for executing more than 10,000 exchanges for every second. Tradeone offers a simple to explore interface, sufficient liquidity, influence and above all low spreads between the purchase and move orders.
Decentralized Exchange
This part of the collective ecosystem associates purchasers and merchants in a single space, dealers exchange shared (P2P) without the need of mediators (go betweens). There is no need of KYC (know your client.) and AML (against money laundering) checks, camouflage of merchants, low expenses, and in particular an abnormal state of security.
Ethereum based tokens will be the main tokens accessible on the #dex, on account of its decentralized nature clients won't need to enroll or store their private keys on the dex, they will most likely connection diverse sorts of wallets bolstered by the COLLECTIVE platform, a portion of these upheld wallets incorporates MyEtherWallet, MyCrypto, MetaMask, Ledger and so on.

https://preview.redd.it/fexwyuddaxi21.png?width=655&format=png&auto=webp&s=2dd42d5c0acfce62a9b9ba75edcc09bd6baa088f
Collectivego Game
The #collectivego computer game is the place amusement sweethearts can get boosted doing what they cherish which is playing computer games, gamers will appreciate gaming on the platform since it has VR (augmented reality) usefulness which makes them feel like they're inside the diversion and recreations from best recreations engineers will be made accessible on the platform.
Tokens utilized for boosting gamers will be held in the escrow to ensure they get their prizes toward the day's end, and gamers should interface their wallets to the COLLECTIVE Network to guarantee a smooth exchange of funds to their ideal wallets. Publicists are not forgotten; they can promote inside the amusement utilizing #cdex tokens.
Collective Global Initiative
This part of collective ecosystem involves of all functionalities on the COLLECTIVE ecosystem, it offers an across the board arrangement. They plan to give an agreeable environment to any enrolled customer to concentrate on making a working item. They will interface organizations with a similar objective for them to probably team up.
The collective system will upgrade correspondence and trustworthy collaborations between enlisted foundations, every single enrolled customer will be treated with most extreme appreciation and dedication. This will, thusly, make and uncover loads of business thoughts.
For further information, visit https://www.thecollectivegroup.org/ico/
Bounty0x Username: docasvad
submitted by stasiukviktar to BountyICO [link] [comments]

Examine This Report on 4 Reasons Why This Is the Correct Time to Invest in Bitcoins The Two Most Common Ways Criminals Launder Money Drug dealers using bitcoin cashpoints to launder money BitInstant CEO Charlie Shrem Arrested! Ozark money laundering 101

U.S. government agents have arrested Charlie Shrem, the CEO of Bitcoin exchange BitInstant, charging him with laundering money for customers of online drug bazaar Silk Road. Bitcoin dealers charged in US with money laundering Updated / Monday, 27 Jan 2014 22:00 A sticker on the window of a local pub indicates the acceptance of Bitcoins for payment An alleged conman from Los Angeles has been charged with running a cryptocurrency scam which involved turning twenty-five million dollars ($25 million) During his plea, Kalra acknowledged having provided his services to drug dealers and other criminals. In order to mask his operations, he operated a kiosk – a Bitcoin ATM – where customers were able to exchange the cryptocurrency for cash with ease and without having to reveal their identities, ignoring the anti-money-laundering (AML) regulations imposed on all exchanges. Federal agents have charged a Bitcoin dealer and an executive at a Bitcoin company with money laundering for allegedly selling more than $1 million worth of the cyber currency to people doing

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Examine This Report on 4 Reasons Why This Is the Correct Time to Invest in Bitcoins

Charlie Shrem, the CEO of the Bitcoin-based company BitInstant, was arrested at JFK Airport today upon arriving home from the North American Bitcoin Conference in Miami. According to the federal ... Money Laundering 101 💰 How Criminals Use Bitcoin To Hide Illegal Money 🔫💎🗡 - Duration: 16:33. David Hay Recommended for you. 16:33. In May 2020, a Goldman Sachs investor report argued that Bitcoin is not an investable asset, citing criminal usage. However, major banks often facilitate money laundering and terrorism financing. AML BitCoin was promoted on social platforms and forums as a superior version of Bitcoin (BTC) that offered integrated protections against money-laundering, terrorist financing, and theft risks ... Money Laundering 101 💰 How Criminals Use Bitcoin To Hide Illegal Money 🔫💎🗡 - Duration: 16:33. David Hay 73,739 views. 16:33.

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